JC Company is considering two mutually exclusive projects A and B, with the following Information:

Year	Cash flow of Project A(in $)	Cash flow of Project B(in $)
0	-2,000,000	-2,500,000
1	1,000,000	800,000
2	400,000	950,000
3	500,000	1,400,000
4	200,000
5	250,000
6	300,000

The WACC of the Company for both projects are 11.25%

1. What is the net present value of each project without any adjustment for life.

2. What is the present value of each project when the lives are adjusted using the replacement chain approach.

2. What is the equivalate annual annuity of each project.

4. Which project should be accepted. Explain why?