Which of the following must be assumed to perform an EUAW analysis on a single lifetime...
Which of the following must be assumed to perform an EUAW analysis on a single lifetime of various alternatives?
a) that multiple spare equipments are purchased as backups and stored until needed.
b) that the equipment will have an identical replacement with identical cash flows for the foreseeable future
c) that the equipment will not be replaced once it reaches its end of lifetime.
d) that the aalternative will have a positive NPW over a single lifetime
Homework Answers
Correct Answer:
C
In EUAW analysis, there is no need to equalize the life time using LCM method. Hence, one useful life period will be used to calculate EUAW.
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