Evaluating projects with unequal lives Your company is considering starting a new project in either Spain or Ukraine-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 expected to produce the following cash flows: The Ukrainian project is only a three-year project; however, your company plans to repeat the project after three years. The Ukrainian project is expected to produce the following cash flows: Project: Spanish Year 0: -$800,000 Year 1 $380,000 Year 2: $400,000 Year 3 $420,000 Year 4: $375,000 Year 5 $110,000 Year 6: Project: Ukrainian Year 0 -$475,000 Year 1 $225,000 Year 2: $235,000 Year 3: $255,000 $85,000 Because the projects have unequal lives, you have decided to use the equivalent annual annuity approach to evaluate them. You have determined that the appropriate cost of capital for both projects is 13%. Calculate the NPV of both projects. NPV Spanish project: NPV Ukrainian project: What is the equivalent annual annuity (EAA) for the Ukrainian project? O $42,165.61 O $13,522.02 O $51,020.39 O $46,382.17