Unequal project lives

Praxis Corp. has to choose between two mutually exclusive projects. If it chooses project A$,$ Praxis Corp. will have the opportunity to make a similar

investment in three years. However, if it chooses project B$,$ it will not have the opportunity to make a second investment. The following table lists the

cash flows for these projects. If the firm uses the replacement chain $($common life$)$ approach, what will be the difference between the net present

value $($NPV$)$ of project A and project B$,$ assuming that both projects have a weighted average cost of capital of $14\%?$

Cash Flow

$$13,289$

$$19,491$

$$17,719$

$$14,175$

$$15,947$

Praxis Corp. is considering a three$-$year project that has a weighted average cost of capital of $12\%$ and a NPV of $$49,876.$ Praxis Corp. can replicate

this project indefinitely. What is the equivalent annual annuity $($EAA$)$ for this project?

$$22,843$

$$20,766$

$$25,958$

$$24,919$

$$21,804$