The Advantage(s) of the Equivalent Annual Annuity Method Over the Replacement

Multiple Choice

The advantage(s) of the equivalent annual annuity method over the replacement chain technique in evaluating mutually exclusive investments having unequal lives include

A) the equivalent annual annuity method is often computationally simpler
B) the equivalent annual annuity method simplifies the handling of the time discrepancies that frequently arise in the replacement chain method
C) the equivalent annual annuity method is theoretically superior
D) a and b only