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 | -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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