14. Equivalent anmaat annuities Another methed to deal with the uncqual Ide problem of projects is the equivalent arnual annuity (CAA) method. In this method the annual cash flows under the altemative investments are comverted inte a constant cash flow stream whose NPN is equivalent to the NPV of the comparative project's insital stream. Consider the case of blue Moose Home Bulders: Bhex Moose fome bulders is considering a three year project that has a weighted average cost of capital of 12 the and a fet present vahum (NPV) of \$49,876. Dhe Moose Hocse Builders can replacate thes project indefinitely. What is the equiblent annual aneuty (EM) for this prosect? $20,766$16,609$71,804$22,843 An analyst will need to use the EA approach to evaluate projects weth unequal lives when the projects are