When evaluating a projects with positive NPV but variable life spans, the proper technique to employ is the equivalent annual annuity (EAA) approach.

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When projects have different lifespans, calculating the equivalent annual annuity (EAA) allows for easier comparison by converting the project's NPV into an equal annual cash flow over the project's life. This technique considers time value of money and provides a useful metric for evaluating projects with different lifespans.

When Evaluating a Projects with Positive NPV but Variable Life