22. The Perth Pie Company is considering two mutually exclusive investments that would increase its capacity to make strawberry tarts. The firm uses a 12% cost of capital to evaluate potential investments. The two projects have the following costs and expected cash flow streams: Year 0 1 2 3 4 5 6 7 Project A -$30,000 $10,500 $10,500 $10,500 $10,500 Project B --$30,000 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 8 a. Using these data, calculate the net present value for Projects A and B. b. Create a replacement chain for Alternative A. Assume that the cost of replacing A will be $30,000 and that the replacement project will generate cash flows of $10,500 for years 5 through 8. Using these figures, recompute the net present - value for Alternative A. c. Which of the two alternatives should be chosen, A or B? Why? d. Use the equivalent annual annuity method to solve this problem. How does