Question: explanation please. what is EAA and how does it compare to NPV. Given the following cash flows for two mutually exclusive projects, and a required

 explanation please. what is EAA and how does it compare to
explanation please. what is EAA and how does it compare to NPV.

Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, which of the following statements is true? Year 1 2 3 4 5 Project A -580,000 290,000 290,000 150,000 150.000 Project B -580.000 130,000 130.000 230,000 230.000 230,000 115.000 Project A should be accepted because it has the highest NPV Both projects should be accepted because both have a positive NPV and EAAL Project B should be accepted because it has the highest NPV. Project should be accepted because it has the highest Project Ashould be accepted because it has the highest EAA

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