So I was just asked to calculate the more valuable project using the least common multiple method. However, the question didn’t ask for the NPVS using the LCMM, the question just asked which project of the two added more value.
I find the EAA easier and much quicker to calculate so I simply calculated the EAA to get the answer (which was correct).
Am I correct in assuming that the EAA and the LCMM will always result in the same choice of projects. In other words, even though the figures between LCMM and EAA will be different, the project values of choices will still fall into the same ascending/descending order?
Many thanks to all!