the lessons in the present worth $($PW$),$ future worth $($FW$),$ and annual equivalent $($AE$)$ methods for decision$-$making in construction projects, assuming a constant interest rate throughout the analysis. However, in real$-$world situations, interest rates often fluctuate, due to various economic factors such as market demand or central bank policies. consider a construction company evaluating two options: purchasing new equipment with a longer useful life or renovating its existing equipment, which would have a shorter remaining life. If interest rates start low and then gradually increase over time, or if they are initially high and later decrease, this could significantly affect the financial evaluations of these options.

Discuss how fluctuating interest rates might impact the decision$-$making process for the company in this scenario.

Consider how this variability influences cash flows and the overall selection of alternatives when using PW$,$ FW$,$ or AE methods, keeping in mind that all three approaches ultimately lead to the same decision.