Differentiate between eaa and eac

Reference no: EM131477654

Question: 1. If two mutually exclusive projects with unequal lives have equal NPVs, which project will have the higher equivalent annual annuity? Why?

2. How does the equivalent annual annuity (EAA) differ from the equivalent annual charge (EAC)?

Reference no: EM131477654

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Differentiate between eaa and eac : If two mutually exclusive projects with unequal lives have equal NPVs, which project will have the higher equivalent annual annuity? Why?

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