Question: Landon Marshall is currently evaluating two mutually exclusive projects. Both projects have a cost of capital of 12 percent. Calculate the EAA (Equivalent Annual Annuity)

Landon Marshall is currently evaluating two mutually exclusive projects. Both projects have a cost of capital of 12 percent. Calculate the EAA (Equivalent Annual Annuity) payments for each project and make a decision as to which project to choose. A. Choose Project L since its EAA payment is $26.81 greater than the EAA payment of Project S. B. Choose Project L since its EAA payment is $89.76 greater than the EAA payment of Project S C. Choose Project S since its EAA payment is $53.41 greater than the EAA payment of Project L. D. Choose Project S since its EAA payment is $139.15 greater than the EAA payment of Project L. E. Choose Project S since its EAA payment is $124.24 greater than the EAA payment of Project L. A B C D

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