4. Use the following information for the next three questions: Nelson, Inc. is considering two mutually exclusive projects. Project A is three years long with an initial cash outflow of $10,000 and expected annual inflows of $4,500. Project B is six years long with an initial cash outflow of $18,000 and annual cash inflows of $5,000. The cost of capital is 8% a. What is the NPV of the replacement chain for Project A (extending it to six years)? [1 point] a $ 619 b. $1,106 C. $1,597 d $2,865 e $5,114 b. What is the equivalent annual annuity (EAA) for the preferred project (A or B)? [1 point) a $ 619 b. $1,106 C. $1,597 d $2.865 e $5,114 c. Which of the projects should be selected and why? [1 point] a Project B because its NPV is higher than project A's replacement chain NPV b. Project A because it has a higher replacement chain NPV c. Project B because it has a higher IRR d Project A because it has a higher EAA e Project B because it has a higher replacement chain NPV