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3 3 3 it depends on the specific case sometimes

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3. 3. 3. It depends on the specific case. Sometimes, different criteria don t agree in their recommendations. For example, the NPV of Project 3(393.92) is bigger than Project 4(228.22), so we think Project 3 brings about more benefits to the investor. But the IRR of Project 3(11.33%) is lower than Project 4(12.33%). But sometimes different criteria also agree. For example, the PI of Project 1(0.96) is lower than Project 2(1.02) and the IRR of Project 1 is also lower than Project 2. Thus, the PI and IRR agree in their recommendations. 4. 4. 4. The ranking of projects changes when I change the discount rate. When the rate is 10%, the NPV of Project 7 is lower than Project 8 and both figures are positive. But the rate changes to 14%, the NPV of Project 8 becomes negative. The NPV of Project 7 decreases but still positive. Thus, the ranking of the projects has been changed. 5. 5. The unequal duration does create problems when I compare projects. In most cases, the unequal duration creates unequal payback period. And apply NPV approach only to different durations would introduce wrong decisions. To solve the problems, two solutions provided. The replacement chain approach, and the equivalent annual cost
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3 3 3 It depends on the specific case Sometimes different...

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