chp 12

All select option from drop down box are select (A or B).

please help me answer all part.

Crockett Graphic Designs Inc is considering two mutually exclusive projects. Both projects require an initial after-tax investment of $9,000 and are typical average-nsk projects for the firtn. Project. A has an expected Me of 2 years with after-tax cash inflows of $8,000 and $10,000 at the end of Years 1 , and 2 , respectively. Project Binas an expected life of 4 years with after-tax cash inflows of $8,000 at the end of each of the next 4 years. The firm's wacc is 10%. a. If the peoiects cannot be repeated, which project should be selected if Crockett uses NPV as its criterion for project selection? Project. should be selected, b. Assume that the progects can be repeated and thot there are no antopated changes in the cath flows. Use the replacement chain analysis to detertine the NFV of the project selected. Do not round intermediate calculatons. Round your answer to the nearest cent. Since Project is extended NPV=5 , it should be selected over Project with an NPV = 5 c. Make the same assumptions as in part b. Using the equivalent annual annuty (EMA) method, what is the EAA of the project selected? Project should be selected