Question
A company is considering a two mutually exclusive projects A and B PROJECT A YEARS 0 1 2 3 CF -$15,000 $10,000 $8,000 $6,000 PROJECT
A company is considering a two mutually exclusive projects A and B PROJECT A YEARS 0 1 2 3 CF -$15,000 $10,000 $8,000 $6,000 PROJECT B YEARS 0 1 2 3 4 5 CF -$15,000 $10,000 $5,000 $4,000 $3,000 $2,000 WACC for both projects is 9%
1- The NPV for project A is *
$5,540.85
$5,555.85
$6,500.21
$9,000
2- The NPV for project B is *
$9,000
$4,896.58
$5,540.85
$0
3- The Equivalent Annual Annuity (EAA) for project A is *
$2,861.34
$2,961.34
$2,061.34
$2,188.94
4- The Equivalent Annual Annuity (EAA) for project B is *
$1,258.87
$0
$2,961.34
$3210.50
20) Which project(s) the company should choose *
Project A
Project B
Both projects
None of the projects
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