Cute Camel Lumber Company is considering a five-year project that has a weighted average cost of capital of 14% and a net present value (NPV) of $80,720. Cute Camel Lumber Company can replicate this project indefinitely.

1. The equivalent annual annuity (EAA) for this project is ______________ .

2. The EAA approach to evaluating projects with unequal lives does/does not do a good job of taking inflation into account.