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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Which of the following statements about the equivalent annual annuity approach for capital budgeting is least accurate? A) 5year project has a NPV of $2,000, if the firm's cost of capital is 10% the equivalent annual annuity is $725. B)When comparing mutually exclusive projects with unequal lives, replacement chain analysis yields the same decision as the equivalent annual annuity method. C) The replacement chain approach assumes that it is possible to make continuous replacements each time the asset's life ends.
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