10 free CEA practice questions in the real exam format, covering the official content areas, with an explanation for every answer.
CEA Practice Test 5Tutor mode
Question 1 of 10
Economic Analysis
An auditor must recommend one of two mutually exclusive EEMs: a controls upgrade with a 5-year life and a heat-recovery system with a 15-year life. Both show a positive NPV at the client's 8% discount rate. Which basis of comparison correctly accounts for the different lives?