Question

Annual worth analysis is stronger than present worth in detecting the feasibility of projects: 1- true...

Annual worth analysis is stronger than present worth in detecting the feasibility of projects:
1- true
2- false

explain the reason of your answer

Homework Answers

Answer #1

True

If we talk about the term feasible then it means how the project can be done easily or conveniently or any kind of practical approach

In Annual worth analysis is the way by which equivalent uniform annual watch is calculated for every year for the life cycle of the project

So it gives more accuracy for each year distribution of cash flow for the project

If we talk about the present worth analysis then it only tells the present value of the project that is going to complete after any n number of years

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