Help please If you have reliable economic forecast forfive years only, and you would like toevaluate two alternatives with five and sixyears service lives, the best method to doso isSelect one:a. to choose the alternative with thehighest AW.b. to choose the alternative with thehighest PW.c. Both repeated lives method andstudy period method produce thesame result.O d. to choose the alternative with thehighest PW, FW, or AW.e. to choose the alternative with thehighest FW.

Annual worth is the worth that is used to compare the alternatives. means that all incomes and…

Answered: If you have reliable economic forecast…

If you have reliable economic forecast for five years only, and you would like to evaluate two alternatives with five and six years service lives, the best method to do so is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Help please

If you have reliable economic forecast for
five years only, and you would like to
evaluate two alternatives with five and six
years service lives, the best method to do
so is
Select one:
a. to choose the alternative with the
highest AW.
b. to choose the alternative with the
highest PW.
c. Both repeated lives method and
study period method produce the
same result.
O d. to choose the alternative with the
highest PW, FW, or AW.
e. to choose the alternative with the
highest FW.

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