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 A?

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

Year Project A Project B
0 -300,000 -300,000
1 150,000 70,000
2 150,000 70,000
3 80,000 120,000
4 80,000 120,000
5 120,000
6 60,000

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