Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10 percent.

The NPVs of projects A and B are ________.

The Annualized NPV of project A is ________.

The Annualized NPV of project B is ________.

Which project should be chosen on the basis of the normal NPV approach?

Which project should be chosen using the Annualized NPV approach?

Initial Investment Project A Project B $350,000 $435,000 Year Cash inflows (CF) $140,000 165,000 190,000 100,000 75,000 50,000 $175,000 150,000 125,000 4