The Constant Annuity Payment Over the Life of a Project

question 64

Multiple Choice

The constant annuity payment over the life of a project that is equivalent to receiving the NPV today is the:

• A)annualized annuity.
• B)independent annual benefit.
• C)equivalent annual profitability.
• D)equivalent annual benefit.

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Definitions:

Western Hemisphere

The half of the Earth that lies west of the Prime Meridian and east of the antimeridian, including the Americas and parts of Europe, Africa, and Antarctica.

Columbian Exchange

The widespread transfer of plants, animals, culture, human populations, technology, and ideas between the Americas and the Old World following Columbus's voyages.

Tomatoes

Edible, often red, fruit of the plant Solanum lycopersicum, commonly used in cooking and eaten in a variety of ways worldwide.

Peanuts

A legume crop grown mainly for its edible seeds, known scientifically as Arachis hypogaea.