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Can you please show the procces in how to get the answers please than you ! C=r(NPV)/1(1+r)-n where, C - Equivalent Annuity Cash Flow, NPV
Can you please show the procces in how to get the answers please than you !
C=r(NPV)/1(1+r)-n where, C - Equivalent Annuity Cash Flow, NPV - Net Present Value i.e. NPV of resepctive project, r - Rate Per Period i.e. 15%,n - Number of Periods i.e 4 years Equivalent Annuity Cash Flow/Worth of project C is negative we will not accept it We can accept Project A \& Prject B both since Equivalent Annuity Cash Flow/Worth of both is positve As Equivalent Annuity Cash Flow/Worth of project B is more than project A so we will accept project B
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