Question: 19. You are evaluating two mutually exclusive projects, A and B, with equal investment of $5,000, required rate of return of 8%, and following cash

19. You are evaluating two mutually exclusive projects, A and B, with equal investment of $5,000, required rate of return of 8%, and following cash flows in years 1-3 (for project A) and 1-5 (for project B) Year 1 Year 2 Year 3 Year 4 Year 5 Project A 18001700 3200 Project B 1200 1280 1350 1400 2200 Which project will you prefer and why? A. Project A since it reports higher NPV of 806.5 B. Project B since it reports higher NPV of 806.5 C. Project A since it reports higher EAA of 257.81 D. Project B since it reports higher EAA of 201.99

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