MIE258H1 Lecture Notes - Lecture 10: Least Common Multiple, Airborne Early Warning And Control, Mansfield
25 Jan 2019
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Analysis period: time span over which the economic effects of an investment will be. Project life: useful life of an investment project. Npw should not be used to compare alternatives with different project lives. Investment alternatives must be compared using an equal time span. Possible scenarios: project life equals analysis period, project life longer than analysis period, project life shorter than analysis period, two projects with different lives, least common multiple approach, aew approach, project life equals analysis period. In the real world, it is rare that the life of a project will be exactly equal to the analysis period. See all previous examples in this chapter: project life longer than analysis period. This is common in the real world, especially in construction where the life of each machine is typically longer than a single job . Example: the musk mars space colony requires a new crane to build larger developments and has a marr of 11%.
