This is true or false questions. 1. If all individual B/C ratios of MEAS are less than
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This is true or false questions.
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1. If all individual B/C ratios of MEAS are less than 1.00, then the preferred option is to "Do Nothing". 2. The concept of individual projects stems from the B/C ratio each project has to offer. Once it is feasible (i.e., BC > 1), MEAS are born. 3. Replacement analysis should be done at the end of the useful life of the property. 4. If there is a past estimation error, there is a need to replace the property immediately. 5. In replacement analysis, the economic life is always less than the useful life. 6. The physical life is always greater than all the other "life" factors under replacement analysis. 7. If breakeven analysis is conducted with PW analysis for different MEAS, it doesn't guarantee that the fastest alternative to reach its breakeven point has also the highest equivalent worth. 8. There is only one factor common with breakeven analysis and incremental B/C ratio analysis. 1. If all individual B/C ratios of MEAS are less than 1.00, then the preferred option is to "Do Nothing". 2. The concept of individual projects stems from the B/C ratio each project has to offer. Once it is feasible (i.e., BC > 1), MEAS are born. 3. Replacement analysis should be done at the end of the useful life of the property. 4. If there is a past estimation error, there is a need to replace the property immediately. 5. In replacement analysis, the economic life is always less than the useful life. 6. The physical life is always greater than all the other "life" factors under replacement analysis. 7. If breakeven analysis is conducted with PW analysis for different MEAS, it doesn't guarantee that the fastest alternative to reach its breakeven point has also the highest equivalent worth. 8. There is only one factor common with breakeven analysis and incremental B/C ratio analysis.
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Related Book For
Applied Statistics in Business and Economics
ISBN: 978-0073521480
4th edition
Authors: David Doane, Lori Seward
Posted Date:
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