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Task 9. The firm is evaluating two mutually exclusive projects (see information in the table below). Assume that the projects are equally risky. The cost

Task 9. The firm is evaluating two mutually exclusive projects (see information in the table below). Assume that the projects are equally risky. The cost of capital is 16%. Net present value Life cycle Project A 20,000 Project B 25,000 3 years 5 years 1) Calculate the effective annual annuity (EAA) for each project 2) Using the EAA decision rule, which project should the firm choose

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