A company is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t = 0.

A company is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t = 0. Project X has an expected life of 2 years with after-tax cash inflows of $6,000 and $7, 900 at the end of Years 1 and 2, respectively. Project Y has an expected life of 4 years with after-tax cash inflows of $4, 300 at the end of each of the next 4 years. Each project has a cost of capital 8%. a) Use the replacement chain approach to determine the NPV of the most profitable project. b) Find the EAA of each project and determine the best