Question: Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the EAA for Project B?

Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the EAA for Project B?

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

A ) 112,210

B) 36,943

C) 138,356
D) 33,652
E) 35,055

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