The easiest way to compare projects with unequal lives is by using:

Question

Quizplus · Accepted Answer

The equivalent annual annuity method is the best choice for comparing projects with unequal lives, as it calculates the annual cash flows of each project over their respective lives, and then converts them into equal annual amounts. This enables a direct comparison of the projects on an annual basis, allowing for a more accurate analysis of their relative profitability. The replacement chain method is also a valid option, but it can be more complex and time-consuming to implement. IRR is not suitable for comparing projects with unequal lives, as it assumes equal project lives and can provide misleading results.

The Easiest Way to Compare Projects with Unequal Lives Is