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Blue Moose Home Builders is considering a four-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 four-year project that has a weighted average cost of capital of 13% and a net present value (NPV) of $89,567. Blue Moose Home Builders can replicate this project indefinitely.

The equivalent annual annuity (EAA) for this project is

The EAA approach to evaluating projects with unequal lives (does/does not) do a good job of taking inflation into account.

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