Annual worth method of comparing alternatives

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Reference no: EM131462365

Select all that apply to the Annual Worth method of comparing alternatives:

1. The AW method is often preferred over the PW method because the AW comparison is performed for only one life cycle.

2. For a specified study period, the AW is determined for the time period corresponding to the lives of each of the alternatives.

3. The AW method is often preferred over the PW method because the AW comparison is performed on multiple life cycles.

4. Cash flows must be converted to equivalent uniform annual amounts for one cycle, which automatically annualizes them for each succeeding life cycle.

5. For a specified study period, the AW is determined for that time period regardless of the lives of the alternatives

Reference no: EM131462365

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