August 2004
Intermediate to advanced
656 pages
15h 28m
English
The present worth on incremental investment method is demonstrated first. In a nutshell, a candidate is considered better than the current best if the present worth, evaluated at the MARR, of the differential cash-flow stream is greater than $0.
The step-by-step process is as follows:
1. | List the alternatives in order of increasing initial investment. |
2. | Select the alternative with the smallest initial investment as the current best. (This will usually be the do nothing alternative.) |
3. | For each of the remaining alternatives, do the following:
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