For two mutually exclusive projects with equal lives, the one with
A)a lower PW at the MARR should be chosen.
B)a higher AW at the MARR should be chosen.
C)a lower FW at the MARR should be chosen.
D)a higher incremental PW at the MARR should be chosen.
E)a higher incremental AW at the MARR should be chosen.

Question

Quizplus · Accepted Answer

For two mutually exclusive projects with equal lives, the project with a higher Annual Worth (AW) at the Minimum Attractive Rate of Return (MARR) should be chosen because it indicates the project will generate more value on an annual basis compared to its alternative, making it the more financially viable option.

For Two Mutually Exclusive Projects with Equal Lives, the One