AW: Suppose you have two assets

Suppose you have two assets. Asset A has an annual worth of $15 and last three years. Asset B has an annual worth of $10 and lasts five years. Which asset would you choose?

Question options:

  • Asset B since it has total benefits of $50.
  • You can't tell because you don't have a planning horizon and the assets don't have equal lives.
  • Asset A since it has a higher annual worth.
  • Asset C.
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