Question: A company is considering a two mutually exclusive projects A and B PROJECT A YEARS 0 1 2 3 CF -$15,000 $10,000 $8,000 $6,000 PROJECT

A company is considering a two mutually exclusive projects A and B PROJECT A YEARS 0 1 2 3 CF -$15,000 $10,000 $8,000 $6,000 PROJECT B YEARS 0 1 2 3 4 5 CF -$15,000 $10,000 $5,000 $4,000 $3,000 $2,000 WACC for both projects is 9%

1- The NPV for project A is *

$5,540.85

$5,555.85

$6,500.21

$9,000

2- The NPV for project B is *

$9,000

$4,896.58

$5,540.85

$0

3- The Equivalent Annual Annuity (EAA) for project A is *

$2,861.34

$2,961.34

$2,061.34

$2,188.94

4- The Equivalent Annual Annuity (EAA) for project B is *

$1,258.87

$0

$2,961.34

$3210.50

20) Which project(s) the company should choose *

Project A

Project B

Both projects

None of the projects

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