Start learning →

The equivalent annual cost method implies what about the project?

AIt is replaced by an identical one
BIt is financed only by equity
CIt will never be repeated again
DIt has no cash inflows at all
Answer & Solution
Correct answer: A. It is replaced by an identical one
EAC assumes the asset is replaced by the same project again, so costs repeat every cycle.
Practise this question with Quill — CA Inter →

Keep practising Capital Budgeting

Browse all Capital Budgeting questions for CA Inter, or explore more Financial Management topics.

Start a Capital Budgeting lesson →
Related questions