Under the Equivalent Annual Value Method,the Criterion for Project Acceptance

question 1

Multiple Choice

Under the equivalent annual value method,the criterion for project acceptance is:

• A)the project with the higher equivalent annual value is preferred.
• B)the project with the lower equivalent annual value is preferred.
• C)the project with the shorter life is preferred.
• D)the project with the higher equivalent annual value is preferred,provided that both projects have the same cost of capital.

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