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Which of the Following Methods Should Be Applied When Comparing

Question 30

Multiple Choice

Which of the following methods should be applied when comparing independent projects with different lives?


A) The constant chain of replacement method only.
B) Either the constant chain of replacement method or the equivalent annual value method only.
C) The constant chain of replacement method using the real cost of capital only.
D) The net present value method is adequate.

Correct Answer:

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