Discounting in the life cycle costing method of economic evaluation:

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Which of the following is FALSE?
Discounting in the life cycle costing method of economic evaluation:
Select one:
O a. Compares the initial capital cost with the savings achieved in the first year of operation
O b. Reflects the time value of money
O c.
Estimates the present value of future costs and savings
O d. Reduces all future sums of money to equivalent sums in a base period
Transcribed Image Text:Which of the following is FALSE? Discounting in the life cycle costing method of economic evaluation: Select one: O a. Compares the initial capital cost with the savings achieved in the first year of operation O b. Reflects the time value of money O c. Estimates the present value of future costs and savings O d. Reduces all future sums of money to equivalent sums in a base period
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