Question: When comparing two projects with diflerent Iives, why do you compule an annuty with an equivalent present value ( PV ) to the net present
When comparing two projects with diflerent Iives, why do you compule an annuty with an equivalent present value PV to the net present vabue NPV
A so that you can see which project has the greatest net present value NPV
B to reduce the danger that changes in the estimate of the discount rate will lead to choosing the project with a shorier limetrame
C to ensure that cash flows from the project with a longer life that ocour afler the proipct with the shorter Me has ended are considered
D so thai the projects can be compared on their cost or value creatod per yoar
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