The French project is a six-year project that is expected to produce the following cash flows: The Mexican project is only a three-year project; however, your company plans to repeat the project after three years. The Mexican project is expected to produce the following cash flows: Project: French Year 0 -$700,000 Year 1 $240,000 Year 2: $270,000 Year 3 $290,000 Year 4: $250,000 Year 5 $130,000 Year 6: $110,000 Project: Mexican Year 0 -$475,000 Year1 $225,000 Year 2 $235,000 Year 3 $255,000 Because the projects have unequal lives, you have decided to use the equivalent annual annuity approach to evaluate them. You have determined that the appropriate cost of capital for both projects is 10%. Calculate the NPV of both projects. NPV French project $259,131 NPV Mexican project $116,172.05 What is the equivalent annual annuity (EAA) for the Mexican project? O $46,382.17 O $13,522.02 O $51,020.39 O $42,165.61 What is the equivalent annual annuity (EAA) for the French project? O $37,060.55 O $68,892.72 O $62,629.75 O $56,936.13 If the CFO uses the EAA approach to decide which project to undertake, he should choose the French project because it has the lowest EAA