| Learning Objectives (See related pages)
Formulating alternatives Identify mutually exclusive and independent projects, and
define a service and a revenue alternative. |
| | | PW of equal-life alternatives Select the best of equal-life alternatives using present worth
analysis. |
| | | PW of different-life alternatives Select the best of different-life alternatives using present
worth analysis. |
| | | FW analysis Select the best alternative using future worth analysis. |
| | | Capitalized cost (CC) Select the best alternative using capitalized cost
calculations. |
| | | Payback period Determine the payback period at i = 0% and i > 0%, and
state the shortcomings of payback analysis. |
| | | Life-cycle cost (LCC) Perform a life-cycle cost analysis for the acquisition and
operations phases of a (system) alternative. |
| | | PW of bonds Calculate the present worth of a bond investment. |
| | | Spreadsheets Develop spreadsheets that use PW analysis and its
extensions, including payback period. |
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