Annual expenses for two projects have been estimated by a project manager as follows: If the average

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Annual expenses for two projects have been estimated by a project manager as follows:

If the average general price inflation rate is expected to be 4% per year and the real rate of interest is 9% per year, show which alternative has the least negative equivalent worth in the base period.

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Engineering Economy

ISBN: 978-0132554909

15th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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Question Posted: May 17, 2016 06:03 AM

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Annual expenses for two projects have been estimated by a project manager as follows: If the average

Question:

Project B Project A (Real S) EOY (Actual S) atb-0 1 $100,000 $80,000 2 $112,000 $100,000 3 $136,000 $120,000 4 $150,000 $140,000

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f 6 per year i r 9 per year b 0 Alternative A Estimates are in ac...View the full answer

Engineering Economy

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