Part B

(1) Discuss equal economic life and unequal economic life for two or more options of a project when using NPV for the comparison between them.

(2) What are the criteria to appraise one project option using NPV, IRR, and CBA, respectively? What are the criteria to appraise and compare two or more project options using NPV, IRR, and CBA, respectively? Explain the reasons why.

(3) Compare NPV, IRR, and CBA as three important project appraisal techniques based on your understanding.