ACtE04 · Chapter 4Computer Organization & Embedded Systems🏛️ Past Licensure QuestionID: cb1a20c9
In engineering economics and equipment replacement analysis, if project alternatives A and B have economic service lives of 6 years and 8 years respectively, the repeatability analysis (Least Common Multiple / LCM study period) requires an analysis period of:
In engineering economics and equipment replacement analysis, if project alternatives A and B have economic service lives of 6 years and 8 years respectively, the repeatability analysis (Least Common Multiple / LCM study period) requires an analysis period of:
Multiple Choice Options
- A
12 years
- B
16 years
- C
18 years
- D✓ Correct Option
24 years
Detailed Technical Solution & Explanation
In engineering economics, comparing mutually exclusive project alternatives with unequal service lives using the repeatability (replacement) assumption requires finding the Least Common Multiple (LCM) of their economic lives:
Alternative A repeats times; Alternative B repeats times.
Option Analysis:
•
Option A (12 years): Not a multiple of 8.
•
Option B (16 years): Not a multiple of 6.
•
Option C (18 years): Not a multiple of 8.
•
Option D (24 years): Correct; years.
Reference: Demo2 · Set 2NEC Licensure Syllabus