The advantage of using annual equivalent method is that the calculation process is easier since we do not need do not renew the shorter life project. A) True B) False The Present Worth method and the Annual Worth method will always give you the same conclusion of selecting the best project to implement, even though the life of each project is different. A) True B) False First cost for special equipment = $2000, its renewal cost = $1000 per every 50 years of his life cycle. If n = infinity and i = 9%, then its EUAC is most nearly: A) $181 B) $200 C) $195 D) $250 E) $188 F) No Correct Answer You deposit $1000 per year at the beginning of each year for the next 3 years and earn a sum of $3000 at the beginning of year 7. Based upon the above information, below is the correct cash flow diagram. A. TRUE B. FALSE End of year 0 1 2 3 4 5 6 7 8 9 Cash flow 100 100 100 100 -Q 50 50 50 0 -200 If I = 6%, Then, Q is most nearly: A. 448 B. 597 C. 347 D. 488 E. 347 F. No Correct Answer Purchasing power of money depends upon the rate of interest and time period. A. TRUE B. FALSE Earning power of money depends upon an economic situation such as inflation/deflation. A. TRUE B. FALSE