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Globo-Dharma Co. has to choose between two mutually exclusive projects. If it chooses project A, Globo-Dharma Co. will have the opportunity to make a similar

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Globo-Dharma Co. has to choose between two mutually exclusive projects. If it chooses project A, Globo-Dharma Co. will have the opportunity to make a similar investment in three years. However, if it chooses project B, it will not have the opportunity to make a second investment. The following net present value (NPV) of project A and project B, assuming that both projects have a weighted average cost of capital of 12% ? $14,487 $12,073 $12,878 $10,463 $16,097 replicate this project indefinitely. What is the equivalent annual annuity (EAA) for this project? $8,761 $11,681 $9,734 $10,221 $10,707

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