Question: 12-5 For two projects A and B, both have initial capital outlay of $20,000 at T=0, Project A has 6 year physical life time with

12-5 For two projects A and B, both have initial capital outlay of $20,000 at T=0, Project A has 6 year physical life time with annual cash flow of $6,000. Project B has 3 year physical life time with same $6,000 annual cash flow. If the discount rate is 10%, which project should be chosen if using EEA (Equivalent Annual Annuity) approach to calculate?

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