Consider two projects, $T$ and $F,$ which are mutually exclusive, have unequal lives, and are repeatable. Their cash flows are depicted in the table below:

Project Year $0$

Year $1$

Year $2$

Year $3$

Year $4$

Year $5$

T $,$$$75$ million $$45$ million $$45$ million

F $$91$ million $$24$ million $$24$ million $$24$ million $$24$ million $$24$ million

Assuming a WACC of $7\mathrm{.}5\%,$ use the equivalent annuity approach $($EAA$)$ to compare the projects and pick the better choice, given repetition.

Project $F$ is better as its EAA is higher by $$1\mathrm{.}72$

Project $T$ is better as its EAA is higher by $$1\mathrm{.}72$

Project $F$ is better as its EAA is higher by $$300,805$

Project $F$ is better as its NPV is higher by $$300,805$

Project $T$ is better as its EAA is higher by $$1,722,411$