Another method to deal with the unequal life problem of projects is the equivalent anual annuity (EAA) method. In this method the annual cash flow under the alternative Investments are converted into a constant cash flow stream whose NPV be equivalent to the NPV of the comparative projects Initial ream Consider the case of Fuzzy Badger Transport Company Furry Badger Transport Company is considering a four-year project that has a weighted average cost of capital of 13 and a net present value (NPV) of $89,567, Futy Badger Transport Company can replicate this project indefinitely The equivalent annual annuity (AA) for this project is do a good job of taking inflation into account The EAA approach to evaluating projects with unequal lives Save A continue Come without saving