Consider the case of Three Waters Boatbuilders:

Three Waters Boatbuilders 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.$ Three Waters Boatbuilders can replicate this project indefinitely.

What is the equivalent annual annuity $($EAA$)$ for this project?

$$28,606$

$$27,101$

$$30,112$

$$34,629$

mutually exclusive

independent

An analyst will need to use the EAA approach to evaluate projects with unequal lives when the projects are $q,$