Finding the equivalent annual annuity (EAA)is a good way to deal with projects with unequal lives and should only be used with mutually exclusive projects.

Name: Finding the equivalent annual annuity (EAA)is a good way to deal with projects with unequal lives and should only be used with mutually exclusive projects.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Finding the EAA is a valid method for comparing projects with unequal lives, but it should only be used for mutually exclusive projects (i.e. projects where only one can be chosen).

Finding the Equivalent Annual Annuity (EAA)is a Good Way to Deal