Another method to deal with the unequal life problem of projects is the equivalent annual annuity (EAA) method. In this method the a under the alternative investments are converted into a constant cash flow stream whose NPV is equivalent to the NPV of the comparat initial stream. Consider the case of Cold Duck Manufacturing Company: Cold Duck Manufacturing Company is considering a five-year project that has a weighted average cost of capital of 12% and a net present value (NPV) of $56,489. Cold Duck Manufacturing Company can replicate this project indefinitely. The equivalent annual annuity (EAA) for this project is The EAA approach to evaluating projects with unequal lives do a good job of taking inflation into account