When Mutually Exclusive Projects Have Different Lives, the Project That

question 43

Multiple Choice

When mutually exclusive projects have different lives, the project that should be selected will have the:

• A) highest IRR.
• B) longest life.
• C) lowest equivalent annual cost.
• D)highest NPV, discounted at the opportunity cost of capital.

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Definitions:

RAM

Short for Random Access Memory, a type of computer memory that can be accessed randomly and is used for storing the working data and machine code currently being used.

FORTRAN

A high-level programming language used primarily for numerical and scientific computing, known for its efficiency in the areas of complex mathematical calculations.

ALGOL

A high-level programming language designed for scientific, engineering, and mathematical calculations, serving as a basis for many modern programming languages.

GUI

Stands for Graphical User Interface, a user interface that allows users to interact with electronic devices through graphical icons and visual indicators.