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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1 Equivalence Equivalence refers to the concept that money received or paid at different points in time can be compared or made equivalent by considering the time value of money In other words its a w... View the full answer