If MARR changes to (i-1)% the present worth will be ?

QUESTION

2. The present worth of a multi-year investment with all positive cash flows (incomes) other than the initial investment is PW = $25,000 at MARR = (i+1)%. If MARR changes to (i-1)%, the present worth will be(a) less than $25,000(b) equal to $25,000(c) greater than $25,000(d) cannot determine without
(a) Less than $25,000 If MARR changes from (i 1)% to (i-1)%, then the Present worth would be decreased. Here the Present Worth of the Project would be $25,000. If MARR changes to

(i-1)%, then the Present Wroth of the Project would be less than $25,000. Hence, the right option (a) Less than $25,000

ANSWER:

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