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Question: Annual expenses for two alternatives have been estimated on different bases as follows:
Alternative A Alternative B
Annual Expenses Annual Expenses
End of Estimated in Estimated in Real
Year Actual Dollars Dollars with b = 0
1 $120,000 $100,000
2 132,000 110,000
3 148,000 120,000
4 160,000 130,000
If the average general price inflation rate is expected to be 4% per year and the real rate of interest is 8% per year, show which alternative has the least negative equivalent worth in the base period?
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Simplify the following expressions.
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Referring to Figure, what is the probability that node 6 (i.e., the completion of activities A, C, E, and F) is reached before 12 weeks have elapsed?
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