For comparison purposes, in order to evaluate alternatives with unequal lives one should
A)repeat service life of each alternative at least three times.
B)assume some certain study period for evaluation by introducing salvage values for each alternative.
C)assume that the service life of each project is indefinite.
D)apply only annual worth comparison method for each alternative.
E)apply only present worth comparison method for each alternative.

Question

Quizplus · Accepted Answer

To evaluate alternatives with unequal lives fairly, it's common to assume a certain study period for all alternatives and introduce salvage values for each to account for their value at the end of the study period. This allows for a more apples-to-apples comparison of their economic worth over the same timeframe.

For Comparison Purposes, in Order to Evaluate Alternatives with Unequal