Question: Two mutually exclusive projects have the following positive NPVs and project lives: please show work project A: npv=5000; life=3 years project B: npv=6500; life=5 years

Two mutually exclusive projects have the following positive NPVs and project lives: please show work

project A: npv=5000; life=3 years

project B: npv=6500; life=5 years

If the cost of capital were 15%, which project would you accept?

Project A because it has higher EAC
Project B because it has higher EAC
Project A because its NPV can be earned more quickly
Project B because it has higher NPV

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