2. Given the following cash flows for Projects A & B, answer questions 2a. - 2c 10% Discount rate = Cash flow (B) Cash flow (A) Year -450 -510 1 325 530 2 325 520 325 325 5 325 325 What are the NPVS of Projects A & B, and which project has the higher 2. NPV-A No NPV-B No Replacement Replacement 2a. NPV No Replacement 2b. Assume Project B has zero residual value after 2 years and is replaced twice to match the life of Project A. With replacement, what NPV-A With NPV-B With Replacement Replacement 2b. NPV - With Replacement 2c. Which project (A or B) would you accept as the preferable project using the EAC Method? EAC Project EAC Project A LO CO 2. Given the following cash flows for Projects A & B, answer questions 2a. - 2c 10% Discount rate = Cash flow (B) Cash flow (A) Year -450 -510 1 325 530 2 325 520 325 325 5 325 325 What are the NPVS of Projects A & B, and which project has the higher 2. NPV-A No NPV-B No Replacement Replacement 2a. NPV No Replacement 2b. Assume Project B has zero residual value after 2 years and is replaced twice to match the life of Project A. With replacement, what NPV-A With NPV-B With Replacement Replacement 2b. NPV - With Replacement 2c. Which project (A or B) would you accept as the preferable project using the EAC Method? EAC Project EAC Project A LO CO