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In detail show and explain all steps Two projects with unequal lives need to be compared. Their cash flows are given below Year 0 Project

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In detail show and explain all steps

Two projects with unequal lives need to be compared. Their cash flows are given below Year 0 Project A S12.500 -$5000 $5000 -S5000 + S2000 Project B -$15,000 $4000 $4000 $4000 -$40001500 4 MARR-15%. Which of the following statements is correct? (a) Project A is better because its present worth over its life cycle is bigger (b) Project A is worse because its annual worth over its life cycle is smaller (c) Project B is better because its annual worth over its life cycle is bigger, (d) Project B is worse because its present worth over its life cycle is smaller

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