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Exercise 4: Projects with Different Time Length There are two projects under consideration: Project A has an NPV of $20m and will last three years.
Exercise 4: Projects with Different Time Length
There are two projects under consideration:
Project A has an NPV of $20m and will last three years.
Project B has an NPV of $60m and will last nine years.
It is anticipated that if either project is chosen it will be possible to repeat it for the foreseeable future. The interest rate is 1% per year. Which project will have a higher EANB and why?
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