Defines the term equivalent annuity approach

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1. Which best defines the term “equivalent annuity approach”?

A. An annuity that is relative easy to value because it continues forever.

B. The conversion of project NPV into an annuity stream.

C. The amount of cash flow per year that makes the NPV equal to zero.

D. The amount of cash flow that makes the internal rate of return equal to the required rate of return.

2. Which of the following is the right place for an IPO activity?

A. Primary market

B. Secondary market

C. Auction market

D. OTC market

Reference no: EM131057007

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