The next 2 questions are based on the following: A company is considering two average-risk alternative ways of producing a product. Process A has a cost of $8,500 and will produce net cash flows of $5,000 per year for 2 years. Process B will cost $11,500 and will produce cash flows of $4,000 per year for 4 years. The company can extend each of the two alternatives as needed. The cash inflows occur at the end of each year, and this companys cost of capital is 10 percent.

1-The company will use the replacement chain approach to evaluate the project, the NPV of the better project?

a) $ 1,458.88

b) $909.78

c) $1,179.46

d) $324.53

e) $544.32

f) None of the above

2- What is the EAA of the worse project?

a) $36.56

b) $168.01

c) $278.36

d) $102.38

e) $372.09

f) None of the above

I will rate! Need to see the work/formulas. Thank you!