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The following two mutually exclusive projects are being evaluated. The firm's required rate of return is 12%. Year Project A Cash Flow Project B Cash

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The following two mutually exclusive projects are being evaluated. The firm's required rate of return is 12%. Year Project A Cash Flow Project B Cash Flow 0 -585,000 -$136,000 1 42,500 43,350 2 42,500 43,350 3 42.500 43,350 4 43,350 5 43,350 Which of the following statements best describes projects A and B? Both projects should be accepted because they have positive NPVs and EMAS. O Project B should be accepted because it has the highest EAA Project B should be accepted because it has the highest NPV. Project A should be accepted because it has the highest EAA Neither project is acceptable

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