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The AW of a project can be estimated by reducing all cash flows including the capital investment, salvage value in terms of annualized cash flows
The AW of a project can be estimated by reducing all cash flows including the capital investment, salvage value in terms of annualized cash flows at an interest rate(i). Select one: True False The modified B/C ratio includes maintenance and operation costs and treat them in a manner similar to benefits. Select one: True False Given the following information about projects A and B: Project A Project B Time 0 -10,000 -10,000 Time 1 5,000 4,000 Time 2 4,000 3,000 Time 3 3,000 10,000 If alpha company uses IRR rule to choose projects, which of the projects (Project A or Project B) will rank highest? Select one: a. Project A and Project B have the same ranking. O b. Cannot calculate a payback period without a discount rate. O C. Project B 0 d. Project A
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