Allied Biscuit Co$.$ has to choose between two mutually exclusive projects. If it chooses project A$,$ Allied Biscuit Co$.$ will have the opportunity to make a

similar investment in three years. However, if it chooses project B$,$ it will not have the opportunity to make a second investment. The following table

lists the cash flows for these projects. If the firm uses the replacement chain $($common life$)$ approach, what will be the difference between the net

present value $($NPV$)$ of project A and project B$,$ assuming that both projects have a weighted average cost of capital of $13\%?$

Cash Flow

$$9,522$

$$11,109$

$$10,316$

$$11,903$

$$15,870$

Allied Biscuit Co$.$ is considering a four$-$year project that has a weighted average cost of capital of $12\%$ and a NPV of $$29,567.$ Allied Biscuit Co$.$ can

replicate this project indefinitely. What is the equivalent annual annuity $($EAA$)$ for this project?

$$10,221$

$$9,247$

$$8,274$

$$9,734$

$$8,761$