A company is considering two mutually exclusive projects: Project A has a cost of $15000, a 3-year life, and after-tax cash flows of $10,000, $8,000 and $6,000 respectively. Project B has a cost of $15000, a 5-year life, and after-tax cash flows of $10,000, $5,000, $4,000, $3,000 and $2,000 respectively. Both projects have a WACC of 9%.

9. The Equivalent Annual Annuity (EAA) for project A is: *

A. $2,861.34

B. $2,961.34

C. $2,061.34

D. $2,188.94

E. None of the above

10. The Equivalent Annual Annuity (EAA) for project B is: *

A. $1,258.87

B. $0

C. $2,961.34

D. $3,200

E. None of the above

11. The Payback period for project A is: *

A. 1.625 years

B. 1 year

C. 0.625 year

D. 2 years

E. None of the above

12. The discounted payback period for project B is: *

A. 2 years

B. 2.52 years

C. 1.86 years

D. 1.85 years

E. None of the above

13. The MIRR for project B is: *

A. 14.33%

B. 15.24%

C. 15.33%

D. 15.00%

E. None of the above