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Chapter Review: True or False Quiz
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This online quiz contains 6 questions. Click on the button next to the selection that best answers the question. To review your results, click on the Submit Answers button displayed after the last question. Good luck!

1
When comparing unequal-life alternatives by the AW method, it is not necessary to compare them over their least common multiple of lives.
A)TRUE
B)FALSE
2
The equivalent annual worth of unequal-life alternatives can be determined by first calculating their present worth for one life cycle and then multiplying that value by the A/P factor for their LCM.
A)TRUE
B)FALSE
3
Different-life alternatives can be compared by the present worth method based on equal service, if you calculate the annual worth of each alternative over its life cycle and then multiply the resulting A value by the P/A factor for their LCM.
A)TRUE
B)FALSE
4
The annual worth of a perpetual project is called its capitalized worth.
A)TRUE
B)FALSE
5
The capitalized cost of a finite-life alternative can be obtained by calculating its annual worth over one life cycle and than multiplying by the P/A factor for its life cycle.
A)TRUE
B)FALSE
6
The annual worth of an asset for one life cycle is the same as that calculated over two, three, or any other number of life cycles.
A)TRUE
B)FALSE







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