alleryStart learning →The chain method with NPV gives answers that are mathematically
Aalways higher than EAC
Bunrelated to the EAC
Cvalid beyond 10 years only
Dequivalent to the EAC method
Answer & Solution
Correct answer: D. equivalent to the EAC method
Repeating each project to a common horizon and comparing NPVs ranks projects exactly as annualised costs do.
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