Question: 10-FE007 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

10-FE007 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 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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