II. Unequal project lives M Aa E Extensive Enterprise Inc. has to choose between two mutually exclusive projects. If it chooses project A, Extensive Enterprise Inc. will have the opportunity to make a similar investment in three years. However, if it chooses project B, it will not have the opportunity to make a second investment. The following table lists the cash flows for these projects. If the firm uses the replacement chain {common life) approad'i, what will be the difference between the net present value {NPW of project A and project B, assuming that both projects have a weighted average oost of capital of 11%? Cash Flow Project A Project E -$ 10,000 Year 0: -$40,000 $?,000 Year 1: $9,000 $15,000 Year 2: $13,000 $14,000 Year 3: $12,000 Year 4: $ 11,000 Year 5: $ 10,000 Year 6: $9,000 0 $29,525 0 $20,233 0 $24,229 0 $22,930 0 $25,922 Extensive Enterprise Inc. is considering a four-year project that has a weighted average cost of capital of 13% and a NW of $90,760. Extensive Enterprise Inc. can replicate this project indenitely. What is the equivalent annual annuity {EM} for this project? 0 $25,935 0 $22,452 0 $33,554 0 $30,513 0 $35,515