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Definition:
a) The AW of a project is an equal annual series of dollar amounts, for a stated period, that is equivalent to the cash inflows and outflows at an interest rate that is generally the MARR
b) AW Decision Rule:  If AW (i =MARR) > 0, the project is economically justified

Formula:

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Definition:
a) Primary objective of time value of money methods is to maximize the future wealth of the owners of a firm.
b) FW Decision rule: If FW (i = MARR) > 0, the project is economically justified.

Formula:

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Definition: Known also as present value where the value of an expected income stream determined as of the date of valuation.
Formula: