Explain why the equivalent annual cost (EAC) method helps firms evaluate alternative investments with unequal lives.

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Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

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Question Posted: Mar 26, 2015 06:36 AM

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Explain why the equivalent annual cost (EAC) method helps firms evaluate alternative investments with unequal lives.

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The EAC method provides a present value per year This means one can look at ...View the full answer

Introduction to Corporate Finance What Companies Do

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