Question: Please explain equivalence and how is the calculation affected by changes in interest rate? Change in term or periods? What assumptions will determine the APR?

  • Please explain equivalence and how is the calculation affected by changes in interest rate? Change in term or periods?

  • What assumptions will determine the APR?

  • Why is the Present Worth Method of analysis popular with organizations?

  • Why are we interested in the incremental when performing Benefit-Cost Calculations for Multiple Alternatives?

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