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Blue Moose Home Builders is considering a five-year project that has a weighted average cost of capital of 13% and a net present value (NPV)
Blue Moose Home Builders is considering a five-year project that has a weighted average cost of capital of 13% and a net present value (NPV) of $30,450. Blue Moose Home Builders can replicate this project indefinitely.
What is the equivalent annual annuity (EAA) for this project?
$9,090
$10,388
$8,657
$8,224
An analyst will need to use the EAA approach to evaluate projects with unequal lives when the projects are ??? .
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