Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 22.5, Problem 2CC
Summary Introduction

To discuss: The foremost limitation of the equivalent annual benefit method.

Introduction:

Equivalent annual benefit method (EAB) is used for making the capital budgeting decisions. This indicates the net present value of an investment as a sequence of equivalent cash flows for the life of the investment.

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