When Considering Mutually Exclusive Investment Projects with Different Lives That

question 244

Multiple Choice

When considering mutually exclusive investment projects with different lives that will be replaced once they terminate, it is best to evaluate them using _____________.

• A) the discounted payback rule
• B) the profitability index rule
• C) the equivalent annual cost rule
• D) the internal rate of return rule
• E) the net present value rule

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