Question

in pw analysis for a single project, the project should be implemented only when npw of...

in pw analysis for a single project, the project should be implemented only when npw of benefits is greater than 0

Homework Answers

Answer #1

True.

Present Worth Analysis of Equal-Life Alternatives
One alternative:
Calculate the PW using the MARR. If PW > 0, the
MARR is met or exceeded and the alternative is
financially viable.
Two or more alternatives:
Calculate the PW of each alternative using the MARR.
Select the alternative with the PW value that is
numerically largest, that is, less negative and more
positive, indicating a lower PW of cost cash flows or
larger PW of net cash flows of receipts minus
disbursements.

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