unused funds (2) Question 5 (18 Marks] Haley's Graphic Designs Inc is considering two mutually exclusive projects Both projects require an initial investment of R10,000 and are typical average-risk projects for the company Project A has an expected life of 2 years with after-tax cash inflows of R6,000 and R8,000 at the end of Years 1 and 2, respectively Project B has an expected life of 4 years with after-tax cash inflows of R4,000 at the end of each of the next 4 years The company's WACC is 10% Required. 51 52 If the projects cannot be repeated, which project should be selected if Haley uses NPV as its criterion for project selection? (6) Assume that the projects can be repeated and that there are no anticipated changes in the cash flows Use the replacement chain analysis to determine the NPV of the selected project (5) Make the same assumptions as in part 5 2 Using the equivalent annual annuity (EAA) method, what is the EAA of the selected project? (7) 53