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$2.$ Yong Importers, an Asian import company, is evaluating two

mutually exclusive projects, A and B $.$ The relevant cash flows

for each project are given in the table below. The cost of capital

for use in evaluating each of these equally risky projects is $10$

percent.

$($a$)$ The NPVs of Projects A and B are

A$)$ $$95,066$ and $$56,386,$ respectively

B$)$ $$56,386$ and $$95,066,$ respectively

C$)-$$$56,386$ and $-$$$95,066,$ respectively

D$)$ $$45,000$ and $$650,000,$ respectively

$($b$)$ The annualized NPV of Project A is

A$)$ $$22,674$

B$)$ $$12,947$

C$)$ $$38,227$

D$)$ $$21,828$

$($c$)$ The annualized NPV of Project B is

A$)$ $$11,673$

B$)$ $$12,947$

C$)$ $$38,227$

D$)$ $$21,828$

$($d$)$ Which project should be chosen on the basis of the normal

NPV approach? $($See Table $12\mathrm{.}6)$

A$)$ Project A because its NPV is higher

B$)$ Project B because its NPV is higher

C$)$ Project A because its IRR is higher

D$)$ Project B because its IRR is higher

$($e$)$ Which project should be chosen using the Annualized NPV

approach? $($See Table $12\mathrm{.}6)$

A$)$ Project A because its annualized NPV is higher

B$)$ Project B because its NPV is higher

C$)$ Project A because its IRR is higher

D$)$ Project B because its annualized NPV is higher