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Engineering Economy, 5/e

Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso

Annual Worth Analysis

Matching Quiz

Select the correct answers on the left to fill in the blanks on the right. There are more answers than questions, therefore, some of the items on the right will remain unused. When you have completed the quiz, click the SUBMIT button at the bottom.


1				The annual worth method of comparing alternatives converts the cash flows from one life cycle into an amount of money that is the ____________.


2				When comparing different-life alternatives by the annual worth method, the annual worth calculated using their LCM of lives will be the same as that calculated over one ______________.


2				When comparing different-life alternatives by the annual worth method, using the AW calculated over each one's life cycle assumes that the assets will be needed for _______________.


2				When comparing different-life alternatives by the annual worth method, using the AW calculated over each one's life cycle assumes that the cash flows in succeeding life cycles will change by exactly the _____________.


2				The annual worth of a permanent investment can be determined from its capitalized cost by _________________.

Answer choices for questions 1 through 2

A)	Uniform for all interest rates
B)	Same each period
C)	Multiplying by i.
D)	Life cycle only
E)	Their least common multiple of years
F)	Inflation or deflation rate
G)	Two life cycles of each one
H)	Effective interest rate
I)	Study period
J)	Using the A/P factor for a large n value

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