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Part $1$

When comparing two projects with different$$ lives, why do you compute an annuity with an equivalent present value$($PV$)$ to the net present value$($NPV$)?$

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Part $1$

A$.$

to reduce the danger that changes in the estimate of the discount rate will lead to choosing the project with a shorter timeframe

B$.$

to ensure that cash flows from the project with a longer life that occur after the project with the shorter life has ended are considered

C$.$

so that the projects can be compared on their cost or value created per year

D$.$

so that you can see which project has the greatest net present value$($NPV$)$