When done correctly, what is the relationship between the present worth of an alternative calculated using a

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When done correctly, what is the relationship between the present worth of an alternative calculated using a then-current approach and the present worth of the alternative calculated using a constant-worth approach?

a. They are equal.

b. Then-current $\mathrm{PW}$ is higher because it uses inflated dollars.

c. Constant-worth PW is higher because it uses a lower discount rate.

d. Cannot be determined without knowing the cash flows and inflation rate

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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Question Posted: Apr 02, 2024 01:10 AM

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When done correctly, what is the relationship between the present worth of an alternative calculated using a

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The answer is d Cannot be determined without knowing the cash flows and inflation rate Heres why The...View the full answer

Principles Of Engineering Economic Analysis

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