The Annual Worth Method Is

question 36

Multiple Choice

The annual worth method is

• A)similar to the present worth method but transforms all annuities to a uniform series at the minimum acceptable rate of return.
• B)similar to the present worth method but transform all annuities to arithmetic gradient series at the minimum acceptable rate of return.
• C)methodologically different from the present worth method since it does not convert all annuities to the present worth at the minimum acceptable rate of return.
• D)similar to the present worth method since it transforms all annuities to the present worth as a single payment.
• E)similar to the present worth method except that all payments are converted into a geometric gradient series.