QUESTION 11 hen alternatives useful lives are different and different from the a

Question

QUESTION 11 hen alternatives useful lives are different and different from the analysis period in the present worth analysis truncate the longer-lived projects) and perform economik analysis only over the period of the project with the shortest ife O define a common analysis period, either least common multiple or project ife related to the project purpose O you can ignore project lives because project life is not important in economk analysis o you must always use an infinite analysis period and capitaized cost to assure asymptotik convergence to a unique solution QUESTION 12 in engineering economic analysis, the 'end of-period convention may be defined as Cash flows are end -of period receipts or disbursements No economic analysis is performed untilthe end of each year when you have receipts for actual costs during the year and cash flows may be accounted for under The MARR interest rate can be determined only for end-of-period receips or disbursements GAA rules is performed until the end of the project when you have receipts for actual costs and cash flows may be accounted for under GAAP rules

Explanation / Answer

12) a) Cash flows are the end of period receipts or disbursement and are uniform series extending to n periods. It is the practice of placing all cash flow transactions to the end of the interest period which eases dealing with effects of interests and decreases complications.

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