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The future worth criterion differs from present worth in placing the equivalent value at

  • A.the date of the largest cash flow
  • B.the midpoint of the study period
  • C.the end of the study period
  • D.the start of the study period

Answer: C

Correct answer: the end of the study period

Present worth, future worth and annual worth are three positions for the same equivalence and always agree in their ranking. Future worth places the equivalent sum at the horizon, which suits questions naturally asked in those terms - what a fund will be worth at the end, or what a project accumulates by a target date.

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