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When evaluating cost alternatives with the co-terminated assumption, If the useful life of the alternative that needs to
Posted: Fri May 20, 2022 8:14 am
by answerhappygod
- When Evaluating Cost Alternatives With The Co Terminated Assumption If The Useful Life Of The Alternative That Needs To 1 (8.24 KiB) Viewed 41 times
When evaluating cost alternatives with the co-terminated assumption, If the useful life of the alternative that needs to be adjusted is less than the selected study period: Calculate the Future Value of both alternatives to determine which one has a greater value at the end of the study period Truncate the alternative at the end of the study period, using an estimated market value at that period. Consider that the cash flows are reinvested at the MARR for the remaining periods. Consider contracting or leasing for the remaining periods.