When comparing mutually exclusive alternatives that have different lives by the present worth method, it is necessary to: (a) Always compare them over a period equal to the life of the longer-lived alternative (b) Always compare them over a time period of equal service (c) Always compare them over a period equal to the life of the shorter-lived alternative (d) Find the present worth over one life cycle of each alternative
When comparing mutually exclusive alternatives that have different lives by the present worth method, it is necessary to: (a) Always compare them over a period equal to the life of the longer-lived alternative (b) Always compare them over a time period of equal service (c) Always compare them over a period equal to the life of the shorter-lived alternative (d) Find the present worth over one life cycle of each alternative
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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When comparing mutually exclusive alternatives
that have different lives by the present worth method, it is necessary to:
(a) Always compare them over a period equal to
the life of the longer-lived alternative
(b) Always compare them over a time period of
equal service
(c) Always compare them over a period equal to
the life of the shorter-lived alternative
(d) Find the present worth over one life cycle of
each alternative
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