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Which of the following statements about mutually exclusive projects with unequal lives is least accurate? A. In comparing mutually exclusive projects with unequal lives, you should always choose the project which has the highest NPV. B. Mutually exclusive projects sometimes have long and different lives, which makes applying the replacement chain method difficult because the lowest common denominator is very large. The equivalent annual annuity is a substitute method that uses the annuity concept to value a project's cash flows. C. For comparing mutually exclusive projects with unequal lives, replacement chain analysis leads to the same decision as obtained by calculating the equivalent annual annuity. |