Question: 2. Dumb and Dumber Development Company has two mutually exclusive projects to evaluate. Assume both projects can be repeated indefinitely. The following cash ows are

2. Dumb and Dumber Development Company has two mutually exclusive projects to evaluate. Assume both projects can be repeated indefinitely. The following cash ows are associated with each project: Period Project A Cash Flows Project B Cash Flows 0 $100,000 - $70,000 1 30,000 30,000 2 50,000 30,000 3 70,000 30,000 4 30,000 5 10,000 The project types are equally risky and the firm's cost of capital is 12 percent. If the firm evaluates projects using equivalent annual annuity (EAA), which project should be selected

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