Question: A firm is evaluating two mutually exclusive projects that have unequal lives. The firm must evaluate the projects using the annualized net present value approach

A firm is evaluating two mutually exclusive projects that have unequal lives. The firm must evaluate the projects using the annualized net present value approach and recommend which project they should select. The firm's cost of capital has been determined to be 14 percent, and the projects have the following initial investments and cash flows: Choose Project R because its ANPV is $18, 274 Choose Project S because its ANPV is $10, 637 Choose Project R because its ANPV is $6, 459 Choose Project S because its ANPV is $6, 459
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