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Your firm is considering one of two projects for investment. Project A costs $ 1 0 , 0 0 0 and will bring cash flows

Your firm is considering one of two projects for investment. Project A costs $10,000 and will bring cash flows of $3,000 for 5 years. Project B costs $12,000 and will yield cash flows of $5,520 for 3 years.Given that these two projects do not have the sameproductive lives and your firm's cost of capital is 3%, which project should you select and why? Because its equivalent annual benefit is higher, choose project A Because its equivalent annual benefit is higher, choose project B Because its NPVis higher, choose project B - Because its NPVis higher, choose project A Because the initial investment is lower, choose project B

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