21. Equivalent annual cash flow (S6.4) When appraising mutually exclusive investments in plant and equipment, financial managers
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21. Equivalent annual cash flow (S6.4) When appraising mutually exclusive investments in plant and equipment, financial managers calculate the investments’ equivalent annual cash flows and rank the investments on this basis. Why is this necessary? Why not just compare the investments’ NPVs? Explain briefly.
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Aun Ali
I am an Associate Member of Cost and Management Accountants of Pakistan with vast experience in the field of accounting and finance, including more than 17 years of teaching experience at university level. I have been teaching at both undergraduate and post graduate levels. My area of specialization is cost and management accounting but I have taught various subjects related to accounting and finance.
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Related Book For 
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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