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

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
T	-$95 million	$55 million	$55 million
F	-$95 million	$30 million	$30 million	$30 million	$30 million

Assuming a WACC of 9.5%, use the equivalent annuity approach (EAA) to compare the projects and pick the better choice, given repetition.

Group of answer choices

Project T is better as its EAA is higher by $35,520

Project F is better as its NPV is higher by $35,520

Project F is better as its EAA is higher by $274,923

Project T is better as its EAA is higher by $274,923

Project T is better as its NPV is higher by $35,520

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