Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs

$95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project

B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two,

$56,000 in year three, and $45,000 in year four. Lithium, Inc.'s required rate of return for

these projects is 10%. The equivalent annual annuity amount for project A is

a. $13,357

b. $18,532

c. $15,024

d. $12,989