TA is considering investing in one of the following two projects, where the chosen project will be replicated repeatedly in the future:

	Project X	Project Y
Initial investment	$100,000	$125,000
Life of project	3 years	4 years
Annual after-tax cash flows	Year 1: $45,000	Year 1: $47,000
	Year 2: $45,000	Year 2: $47,000
	Year 3: $70,000	Year 3: $47,000
		Year 4: $67,000
Required rate of return	10%	10%

Which project is most beneficial for TA, and what is its EAA?

(A.) Project X; EAA = $12,341

(B.) Project X; EAA = $30,691

(C.) Project Y; EAA = $11,876

(D.) Project Y; EAA = $37,644

(E.) Neither Project X nor Project Y