Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which of these describe/s mutually exclusive alternatives? Evaluation of mutually exclusive alternatives yields to selection of at most one alternative. It is based on
Which of these describe/s mutually exclusive alternatives? Evaluation of mutually exclusive alternatives yields to selection of at most one alternative. It is based on the economic benefits which translate to equivalent worth. C. Other economic factors that may produce only little deviation must be excluded during computation. D. The study period must be the same for all possible alternatives. . . If alternatives A, B, and C have useful lives of 3, 7, and 9, respectively, which of these is/are correct? A. Coterminated assumption can be used. B. Repeatability assumption can be used. C. If AW is used as the comparison parameter, all study periods have to be extended until period 63. D. If AW is used, projects A and B shall both assume a study period of 9 years provided that all cash flows will remain unchanged. . During the evaluation of mutually exclusive alternatives (MEA) under independent projects, "Do Nothing" is often the last resort. the highest B/C ratio doesn't always mean it is the best option. other than "Do Nothing", the base alternative is always the project with highest equivalent worth. D. the market value of an alternative at somen years is not considered as part of the total cost analysis. . . .
Step by Step Solution
★★★★★
3.49 Rating (159 Votes )
There are 3 Steps involved in it
Step: 1
AEvaluation of mutually exclusive alternatives yields to the selection of at most one alternative if two or more alternatives are compared on a level ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started