Basics of Engineering Economy 1st Edition by Leland Blank,Anthony Tarquin

Exercise 5

You have the estimates for two alternatives, A and B, from which to select the cheaper one using an AW evaluation.Your boss selects a study period of 5 years, but, A has an expected life of 3 years and B has a 10-year life.Concerning the estimates, what is necessary to correctly perform the AW calculations over the 5-year period?