Annual Expenses for two alternatives have been estimated on different bases as follows. If the average general price inflation rate is expected to be 4% per year and the real rate of interest is 8% per year, show which alternative has the least negative equivalent worth in the base period? End Alternative A Alternative B

of Annual Expenses Annual Expenses

Year Estimated in Estimated in Real

Actual Dollars Dollars with b=0

1 $120,000 $100,000

2 132,000 110,000

3 148,000 120,000

4 160,000 130,000

Which sentence in the passage refers to the "analysis" of a given problem? jeremy is the production manager in a manafacturing company. he has identified a problem in the production process. he has estimated that the problem would lead to a loss of $10,000 and would require time to resolve. further, he has also identified the source of the problem to be the outdated machinery, which might require major repair, if not immediate replacement. finally, jeremy has also divided the problem into smaller parts, such as production costs, overheads, downtime expense, repair expenditure, and so on.