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If You Have Reliable Economic Forecast for Five Years Only

Question 50

Multiple Choice

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


A) the repeated lives method.
B) the study period method.
C) Both repeated lives method and study period method produce the same result.
D) to choose the alternative with the highest FW.
E) to choose the alternative with the highest PW.

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