Blanche Inc. is a Canadian firm that wants to expand its business internationally. It is considering potential projects in both France and Thailand, and the French project is expected to take six years, whereas the Thai project is expected to take only three years. However, the firm plans to repeat the Thai project after three years. These projects are mutually exclusive, so Blanche Inc.s CFO plans to use the equivalent annual annuity (EAA) approach to analyze both projects. The expected cash flows for both projects follow:

French Project

Year	Cash Flow
Year 0	$975,000
Year 1	$350,000
Year 2	$370,000
Year 3	$390,000
Year 4	$320,000
Year 5	$115,000
Year 6	$80,000

Thai Project

Year	Cash Flow
Year 0	$475,000
Year 1	$225,000
Year 2	$235,000
Year 3	$255,000

If Blanche Inc.s cost of capital is 9%, what is the NPV of the French project?

$307,814

$246,251

$323,205

$261,642

If Blanche Inc.s cost of capital is 9%, what is the NPV of the Thai project?

$67,938.77

$66,739.95

$71,128.66

$126,123.60

What is the EAA for the Thai project?

$49,825.73

$28,439.52

$23,937.05

$14,722.73

What is the EAA for the French project?

$68,617.76

$55,610.58

$39,977.75

$66,070.93

If the CFO uses the EAA approach to decide which project to undertake, he should choose the French/Thai project because it has the highest/lowest EAA.