Question: A firm is considering two mutually exclusive projects as follows: End of Year 0 1 Project K - 40,000 25,000 Project U -30,000 22,000 2

A firm is considering two mutually exclusive projects as follows: End

A firm is considering two mutually exclusive projects as follows: End of Year 0 1 Project K - 40,000 25,000 Project U -30,000 22,000 2 20,000 28,000 3 15,000 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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