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Luthering Corp. has to choose between two mutually exclusive projects. If it chooses project A, Luthering Corp. will have the opportunity to make a similar

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Luthering Corp. has to choose between two mutually exclusive projects. If it chooses project A, Luthering Corp. 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 table lists the cash flows for these projects. If the firm uses the replacement chain (common life) approach, what wil be the difference between the net present value (NPV) of project A and project B, assuming that both projects have a weighted average cost of capital of 13% ? $11,376 $8,216 $10,112 $12,640 $13,904 Luthering Corp. is considering a three-year project that has a weighted average cost of capital of 10% and a NPV of $45,681. Luthering Corp. Can replicate this project indefinitely. What is the equivalent annual annulty (EAA) for this project? $22,043 $22,961 $16,532 $18,369 $20,206

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