Question: A firm is considering two mutually exclusive projects as follows: End of Year 0 1 2 3 Project K - 4 0 , 0 0

A firm is considering two mutually exclusive projects as follows:
End of Year 0123
Project K -40,00025,00020,00015,000
Project U -30,00022,00028,000
Evaluate the project using Equivalent Annual NPV method as well as Replacement Chain NPV method.
Which project will you chose and why? Which method of evaluation will you prefer and why?

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