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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Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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