When lives are equal adjustments to cash flows are not required. The MEAS can be compared by directly comparing their equivalent worth (PW, FW, AW) calculated using the MARR. The decision will be the same regardless of the equivalent worth method you use. For a MARR of 12%, select from among the MEAS below. Capital investment Annual revenues Annual expenses Market Value (EOL) Life (years) A -$150,000 $28,000 -$1,000 $20,000 10 Alternatives B -$85.000 $16,000 -$550 $10,000 10 с -$75.000 $15,000 -$500 D 000-120 $6.000 10 -$120,000 $22,000 -$700 $11,000 10

When lives are equal adjustments to cash flows are not required. The MEAS can be compared by directly comparing their equivalent worth (PW, FW, AW) calculated using the MARR. The decision will be the same regardless of the equivalent worth method you use. For a MARR of 12%, select from among the MEAS below. Capital investment Annual revenues Annual expenses Market Value (EOL) Life (years) A -$150,000 $28,000 -$1,000 $20,000 10 Alternatives B -$85.000 $16,000 -$550 $10,000 10 с -$75.000 $15,000 -$500 D 000-120 $6.000 10 -$120,000 $22,000 -$700 $11,000 10

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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