onelife1

sdanalyst Wrote:
-------------------------------------------------------
> I thought EAA assumes infinite replacement? Which
> makes using an annuity possible?

me 2...

the other question i have is
if your a firm and you have $100, wacc=10%

you have only two mutaly exclusive investments
invest 1, get 5 in a year
invest 100, get 110 in a year

do you invest 1, and return 99 to your investors since that creates a higher NPV ?

ugh my silly brain, i come up with questions that keep me busy for hours, and they will never be tested !