Question: Compare the following projects using the NPV method and the EAA method if the cost of capital is 17%. Year Project A Project B 0

  1. Compare the following projects using the NPV method and the EAA method if the cost of capital is 17%.

Year

Project A

Project B

0

($400,000)

($400,000)

1

$175,000

$160,000

2

$225,000

$160,000

3

$300,000

$160,000

4

$200,000

$160,000

5

$160,000

6

$155,000

7

$155,000

8

$155,000

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