Final answer:
The annual worth of a perpetual project is correctly referred to as its capitalized worth, which is true. The methods described to compare different-life alternatives in the second and third statements are incorrect: you directly compare present worth amounts and convert present worth to annual worth by division, not multiplication.
Step-by-step explanation:
The answer to the first question is True. The annual worth of a perpetual project is indeed called its capitalized worth. This is the value that, if invested at the interest rate corresponding to the cost of capital, would generate an annual amount equal to the project's annual benefit indefinitely.
The second statement is False. Different-life alternatives can be compared on a present worth basis by finding the present worth of each alternative's costs and benefits over its own life cycle and then comparing these present worth amounts directly. Multiplying the annual worth by the P/A factor does not lead to a valid comparison because it would not account for the differences in project lifespans; the comparisons should be based on a common end point, often the least common multiple (LCM) of the lifespans.
The third statement is also False. When determining the equivalent annual worth of unequal-life alternatives, you first calculate the present worth of each alternative. The next step involves calculating the equivalent annual worth by dividing the present worth by the A/P factor for the alternatives' LCM, not multiplying it, to determine the annual series that would be equivalent to the present worth over the LCM period.