Question

the benefit of annual worth analyses include

A - Facilitating unequal project life comparison

B- providing consistency of report format

C- determing unit cost

D- All of the above

Answer 1

The AW method is commonly used for comparing alternatives. AW means that all incomes and disbursements (irregular and uniform) are converted into an equivalent uniform annual (end-of-period) amount, which is the same each period.  The major advantage of this method over all the other methods is that it does not require making the comparison over the least common multiple (LCM) of years when the alternatives have different lives.  That is, the AW value of the alternative is calculated for one life cycle only.

Hence correct option is A