Discussion
Match the situation with the correct treatment of unequal lives.
1. Identical replacement is realistic 2. Technology will have changed 3. Each alternative repeats indefinitely
P. Set a study period and estimate market values Q. Compare over the least common multiple R. Compare on annual worth
Answer: B
Correct answer: 1-Q, 2-P, 3-R
The right treatment of unequal lives depends on what will actually happen. Where identical replacement is realistic, the least common multiple is legitimate. Where technology will have moved on, a defined study period with estimated market values is honest. And where each alternative genuinely repeats indefinitely, annual worth gives the answer with no repetition arithmetic at all.
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