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The XYZ company is considering two mutually exclusive projects with unequal lives. Using the infinite life replacement chain method (based on an equivalent annual annuity),

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The XYZ company is considering two mutually exclusive projects with unequal lives. Using the infinite life replacement chain method (based on an equivalent annual annuity), which project should you select? (The required rate of return is 11%). year Project A Project B 0 -200,000 -200,000 1 50,000 30,000 2 50,000 35,000 3 79,000 40,000 4 110,000 50,000 5 ___ 80,000 6 ___ 95,000

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