Evaluating projects with unequal lives Your company is considering starting a new project in either Spain or the U.S these projects are mutually exclusive, so your boss has asked you to analyze the projects and then tell her which project will create more value for the company's shareholders The Spanish project is a six-year project that is The U.S. project is only a three-year project; however, your expected to produce the following cash flows company plans to repeat the project after three years. The U.S. project is expected to produce the following cash flows Project Spanish Project: U.S. Year 0: $700,000 Year 0: $530,000 Year 1: $240,000 Year 1: $280,000 Year 2: $270,000 ear 3: $290,000 Year 2 $290,000 Year 3 $310,000 Year 4: $250,000 Year 5: $130,000 Year 6: $110,000 have decided to use the equivalent annual annuity approach to evaluate them. You Because the projects have unequal lives, you have determined that the appropriate cost of capital for both projects is 11%. Calculate the NPV of both projects. NPV Spanish project $248,042 NPV U.S. project $184,292.09 What is the equivalent annual annuity (EAA) for the U.S. project? O $42,165.61 O $46,382.17 O $13,522.02 O $51,020.39