Question: Compare the following projects using the NPV method and the EAA method if the cost of capital is 18%. Year Project A Project B 0

Compare the following projects using the NPV method and the EAA method if the cost of capital is 18%. Year Project A Project B 0 ($500,000) ($500,000) 1 $175,000 $155,000 2 $225,000 $155,000 3 $300,000 $155,000 4 $200,000 $155,000 5 $155,000 6 $155,000 7 $155,000 8 $155,000

Then use the given information to replicate Project A and compute the NPV of the new project that lasts for 8 years.

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