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in this video well see how to compare to projects that have a different time period for cash flows a different life span if you will so you have project a that begins in your zero and ends in your six and project B begins in your zero and ends in year three and they have different cash flows so how do you evaluate which one is a better project now you could do the traditional NPV method you could basically compute the NPV for both these cash flows in PV off at the 10% interest rate of all these values and its a 1106 and here you have another NPV of these cash flows here had the same discount rate and you have three years of cash flows now if you look at this it appears that project a is more attractive but that is not the case and the reason for that is because project a goes all the way till here six but project B only goes to layer three supposing what this is is in it involves purchasing some kind of you know production machinery for producing something and here you are able to us