Answer the four questions with a minimum of 20 words per question:Why is it important to consider cannibalization in situations where a company is considering adding substitute products to its product line?Holding the cutoff period fixed which method has a more severe bias against long-lived projects payback or discounted payback?Explain why the equivalent annual cost (EAC) method helps firms evaluate alternative investments with unequal livesHow does the calculation of the after-tax WACC differ from that of the before-tax WACC? Which method is typically applied in the United States? Why?
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