问题如下:
3. Of the two grinders that the Dominion Company is evaluating, Böhm should recommend the:
选项:
A.Bolten grinder because its NPV is higher than the Pinto grinder NPV.
B.Bolten grinder because its EAA is higher than the Pinto grinder EAA.
C.Pinto grinder because its EAA is higher than the Bolten grinder EAA.
解释:
C is correct.
Because the mutually exclusive projects have unequal lives, the EAA should be used instead of the NPV. The NPV and EAA for the Pinto grinder are correct. For the Bolten grinder, the NPV is
To find the Bolten EAA, take the NPV for Bolten and annualize it for four years (N = 4, PV = 37,644, and i = 10%). The Bolten EAA is $11,876. Consequently, the Pinto grinder has the better EAA of $12,341.
老师,这题思路可否理解成:
(1)项目投资年限不同,所以不能用NPV比较
(2)因为已经知道NPV是未来流入在今天的现值,所以EEA代表未来每一期的现金流入PMT,就要选绝对值大的?
有这个疑问是因为:有时候EEA似乎也代表每年流出的成本?要选更小的?
怎么才能确定EEA的含义,以及到底选绝对值大的,还是小的?
谢谢!