Question
1. If, for a given MARR, the present worth of project A is greater than that of project B of the same service life, then
1. If, for a given MARR, the present worth of project A is greater than that of project B of the same service life, then the annual worth of project A will be _________ that of project B.
2. In computing the IRR for a project by trial-and-error method, at i =3%, net PW =$12,and at i =5%,the net PW =$4.What is the best estimate for the IRR?
3. If project A has a higher net AW than project B at MARR =i,then project A will always have a higher net AW than B for all values of MARR i.
4. Although changing the value of MARR changes the values of the PW of alternatives being compared, it never changes the relative rankings of the alternatives in terms of their economic preference.
TRUE / FALSE
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