Little Air Ltd

Multiple Choice

Little Air Ltd. is considering two different projects of unequal length. Which two approaches to this problem should result in the same decision?

A) Using the equivalent-interest-rate approach and the shortest-common-period-of-time approach.
B) Using the equivalent-annual-annuity approach and the shortest-common-period-of-time approach.
C) Using the equivalent-annual-annuity approach and the smallest-discount-rate approach.
D) Using the equivalent-internal-rate-of-return approach and the shortest-common-period-of-time approach.
E) Using the equivalent-annual-cost approach and the shortest-common-discount approach.