Question: Blue Moose Home Builders is considering a five-year project that has a weighted average cost of capital of 13% and a net present value (NPV)

Blue Moose Home Builders is considering a five-year project that has a weighted average cost of capital of 13% and a net present value (NPV) of $30,450. Blue Moose Home Builders can replicate this project indefinitely.

What is the equivalent annual annuity (EAA) for this project?

$9,090

$10,388

$8,657

$8,224

An analyst will need to use the EAA approach to evaluate projects with unequal lives when the projects are ??? .

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