This video provides a comprehensive guide on calculating the Equivalent Annual Net Present Value (EANPV) to effectively compare mutually exclusive projects with varying lifespans, illustrated through a detailed example involving NBA expansion projects. Key Takeaways: The video introduces Equivalent Annual Net Present Value (EANPV) as a more effective method for comparing projects that have unequal lifespans, contrary to the traditional Net Present Value (NPV), which falls short in such comparisons. The EANPV formula is articulated and applied to four distinct NBA expansion projects, each exhibiting different initial investments, NPVs, and project durations. It highlights that relying solely on NPV is inadequate when evaluating projects with differing lifespans, as projects with longer durations have additional opportunities to recover their initial investments. A step-by-step breakdown of the EANPV calculation for each project is presented, showcasing the influence of variations in NPV and project lifespan on the final EANPV outcome. The video wraps up by identifying project D as the top choice due to its highest EANPV. It also demonstrates how changing NPV values can alter this conclusion, underscoring the significance of the EANPV methodology for making well-informed decisions.