Answer Happy

Question 1
The present value of an infinite stream of AEs of the project is
equal to the net present value of the constant chain of replacement
of the project in perpetuity.
NPV∞ = NPV*(1+k) n/((1+k) n-1).
True
False
Question 2
The present value of an infinite stream of AEs of the project is
equal to the net present value of the constant chain of replacement
of the project in perpetuity.
NPV∞ = NPV*(1+k) n/((1+k) n-1).
True
False
Question 3
For mutually exclusive projects, with unequal lives and
replacement, the Annual Equivalent [AE] method will always pick the
best project even though it does not measure the increase in
value.
True
False