Purchase Solution

the life of the project

Not what you're looking for?

Ask Custom Question

Need some help answering the below question.

Assume that an alternative has a 3-year life and that you calculated its annual worth over its 3-year lifecycle. If you were told to provide the annual worth of that alternative for a 4-year study period, would the annual worth value you calculated from the alternative's 3-year life cycle be a valid estimate of the annual worth over the 4-year study period? Why or why not?

Purchase this Solution
Solution Summary

The life of the project is dissected.

Solution Preview

No it will not be a valid estimate. When we are talking about the annual worth of an alternative, we are talking about the equivalent annual cost/benefit. This is done to compare the projects which have unequal life. So if there is a project / alternative with a life of 3 years, the cash flows form the projects may have any pattern i.e. equal every year, increasing as time goes up, decreasing as time moves down or just random. In this case, it is very difficult for us to know what will be ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • The Project Life Cycle

    Steering committees, project champion, project team, consultants, are some of the key players involved in the project life cycle.

  • A Project Life Cycle

    599320 A Project Life Cycle Describe the "typical" life cycle of most projects. Discuss the different phases of the life cycle. What factors contribute to a projects life cycle not being "typical"?

  • Understanding project management

    255268 Understanding project management Briefly explain how project management fits into the big picture in terms of the product life cycle, system life cycle, portfolio management, and program management.

  • Project Management Paper

    What are the basic phases of the project lifecycle and their purposes? "The Project Life Cycle refers to a logical sequence of activities to accomplish the project's goals or objectives" ("Project Life Cycle," n.d.).

  • Project management life cycle - joint meeting

    - In your opinion, what are the limitations of the project management life cycle theory? - How would you improve the project management plans of two other project managers if you were the project manager of their respective projects?

  • Project Management in Information Technology

    The stages of the project life cycle provide control mechanisms for project managers and help those involved understand where a project is and where it is going.

  • Project Management Documents

    How would a Project Manager use these in managing the project through the project life cycle.

  • Five (5) Project Management Life Cycle (PMLC)

    Retrieved on September 24, 2013 from http://projectmanagementforum.wordpress.com/2010/07/06/the-five-project-management-life-cycles/. This is a brief discussion of the project management life cycle.

  • The Solution to Project Management

    The need of control in the project organization determines the number of phases in project life cycle. The project life cycle differs from organization to organization because of the complexity of the project.

  • Project Management Life Cycle Critique: IP

    Let's take a look at the core issues associated with identifying the limitations of the project management life cycle theory: - Identify the limitations of the project management life cycle theory in relation to your and 2 other project managers'

View More Related Solutions