(Answered) consider two mutually exclusive investment projects with MARR=12%consider two mutually exclusive…

Written by

in

➤ How do I compare projects with unequal lives using MARR = 12%?
Convert each project’s NPV, discounted at MARR=12%, into an equivalent annual annuity (EAA) using the capital recovery factor. EAA shows a comparable yearly cash flow. Choose the project with the higher EAA to fairly compare options with different lifespans while keeping the time value of money.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *