Theory in engineering economics

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1. Why is a common analysis period necessary in comparing mutually exclusive alternatives by the "Present Worth Method", but is not necessary in the "Equivalent Uniform Annual Cash Flow method"?

2. Based on a Rate-of-Return analysis of alternatives for A & B, alternative B was selected. A Net Equivalent Uniform Annual analysis of the same alternatives led to the selection of alternative A. Describe the circumstances which could have led to this outcome.

Reference no: EM1367746

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