The constant annuity payment over the life of a project that is equivalent to receiving the NPV today is? the: A

Finance Nov 27, 2020

The constant annuity payment over the life of a project that is equivalent to receiving the NPV today is? the:

A. equivalent annual benefit.

B. independent annual benefit.

C. annualized annuity.

D. equivalent annual profitability.

Expert Solution

The equivalent annual benefit is the constant annuity payment over the life of the project which is equivalent to the NPV today. When this benefits replaced by cost, it is called the equivalent annualcost. Hence, the correct answer is-

A. equivalent annual benefit

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