You Are Evaluating Two Projects with Unequal Lives

question 62

Multiple Choice

You are evaluating two projects with unequal lives. Purchase of a high-quality machine will result in positive cash flows for nine years, while purchase of a medium-quality machine will result in positive cash flows for six years. At the end of each respective time period, the machine is expected to be worthless. How many times will the medium-quality machine project have to be linked in order to come up with a common time period?

• A)Twice
• B)Three times
• C)Four times
• D)Nine times

---

Definitions:

Major Tasks

The primary duties and responsibilities that need to be performed in order to accomplish a role's objectives or a project's goals.

Collective Bargaining

The process of negotiating, administering, and interpreting a labour contract.

Acculturation

The process of adopting the cultural traits or social patterns of another group, often as a result of prolonged contact.

Mediation

A form of conflict resolution where a neutral third party assists the disputing parties in reaching a consensus or settlement.