Suppose a firm is considering two mutually exclusive projects. One project has a life of 6 years;

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Suppose a firm is considering two mutually exclusive projects. One project has a life of 6 years; the other, a life of 10 years. Both projects can be repeated at the end of their lives. Might the failure to employ a replacement chain or EAA analysis bias the decision towar done of the projects? If so, which one and why?

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Fundamentals of Financial Management

ISBN: 978-1337395250

15th edition

Authors: Eugene F. Brigham, Joel F. Houston

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