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Project A costs $ 1 0 , 0 0 0 upfront and yields $ 2 , 5 0 0 in benefits every year for 1

Project A costs $10,000 upfront and yields $2,500 in benefits every year for 10 years.
Project B costs $20,000 upfront and yields $9,000 in benefits every year for 3 years. Assume a 6%
discount rate.
a. Calculate the NPV for each project.
b. Calculate the EANB for each project.
c. Which project would you recommend and why

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