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	Project A	Project B
0	-580,000	-580,000
1	290,000	130,000
2	290,000	130,000
3	150,000	230,000
4	150,000	230,000
5		230,000
6		115,000

Project A should be accepted because it has the highest EAA.

Project B should be accepted because it has the highest NPV.

Both projects should be accepted because both have a positive NPV (and EAA).

Project B should be accepted because it has the highest EAA.

Project A should be accepted because it has the highest NPV.