KOMH Blankets Inc. is considering two mutually exclusive projects. Both projects require an initial after$-$

tax investment of $$89,000$ and are typical average$-$risk projects for the firm. Project A has an expected life

of $3$ years with after$-$tax cash inflows of $$25,000$ at the end of years $1$ and $2$ and $$75,000$ at the end of Year

Project B has an expected life of $9$ years with after$-$tax cash inflows of $$18,500$ at the end of each of the

next $9$ years. The firm's WACC is $13\%.$

If the projects cannot be repeated, which project should be selected if KOMH Blankets uses NPV as its

criterion for project selection $($A or B$)?$

Assume that the projects can be repeated and that there are no anticipated changes in the cash flows.

Using the replacement chain analysis, what is the NPV of Project A Extended?

If the projects can be repeated, which project should be selected $(A$ or $B)?$

Using the equivalent annual annuity $($EAA$)$ method, which project should you select $($A or B$)?$

What is the EAA of the project selected?

Worth $25$ points total.