Little Air Ltd

question 9

Multiple Choice

Little Air Ltd. is considering two different projects of unequal length. Which two approaches to this problem should result in the same decision?

• A) Using the equivalent-interest-rate approach and the shortest-common-period-of-time approach.
• B) Using the equivalent-annual-annuity approach and the shortest-common-period-of-time approach.
• C) Using the equivalent-annual-annuity approach and the smallest-discount-rate approach.
• D) Using the equivalent-internal-rate-of-return approach and the shortest-common-period-of-time approach.
• E) Using the equivalent-annual-cost approach and the shortest-common-discount approach.

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Definitions:

Refreezing

The process of stabilizing a group or organization after a change has occurred, to ensure that the new changes are maintained over time.

Force Field

A concept in psychology and organizational change referring to the dynamic between forces driving change and forces resisting it, influencing the pace and direction of change.

Driving Forces

The motivations or influences that propel an individual, group, or organization towards specific goals or changes.

Restraining Forces

Factors that hinder or slow down the process of change within an organization.