When comparing two projects with different lives, why do you compute an annuity with an equivalent present value (PV) to the net present value (NPV)?

A) so that you can see which project has the greatest net present value (NPV)
B) so that the projects can be compared on their cost or value created per year
C) to reduce the danger that changes in the estimate of the discount rate will lead to choosing the project with a shorter timeframe
D) to ensure that cash flows from the project with a longer life that occur after the project with the shorter life has ended are considered


Answer: B

Business

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A. the preposition in a verb phrase. B. the placement of a verb. C. the principal parts of a verb. D. the independent clause.

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A city is served by three cable TV companies: Xcellent Cable, Your Cable, and Zephyr Cable. A survey of 1000 cable subscribers shows this breakdown of customers from the beginning to the end of August.



a. Construct the transition matrix.
b. What was each company's market share at the beginning and end of the month?
c. If the current trend continues, what will the market shares be?

Business