In engineering economy terminology, which label best aligns with a Present Worth Annuity (PWA)—that is, the present value of a uniform series of future receipts or payments?

Introduction / Context:
A Present Worth Annuity (PWA) represents the present value of a uniform series of equal payments that occur each period. Accurately naming the concept ensures the correct use of discount factors (P/A, i, n) in project appraisal, loan valuation, and benefit–cost analysis.

Given Data / Assumptions:

• PWA focuses on present value at time zero.
• The series is uniform (equal A each period) and occurs for n periods at interest rate i.
• The context is generic engineering economy, not insurance product jargon.

Concept / Approach:
When we discount a uniform series to time zero, we apply the present-worth-of-an-annuity factor P/A. In many textbooks, the cash flows are interpreted as an income stream (receipts), hence the association with “income annuities.” Terms like “premium annuities” come from insurance pricing and can be ambiguous in engineering economy. “Future annuities” refers to computing the future worth (F/A) rather than present worth, so it does not match PWA precisely.

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