Please answer the following question. Use EAC. last question was not answered complete. Please give detail of what you are doing and why?

Given the following cash flows for two mutually exclusive projects (A and B), which project should be chosen?

Assume that the required rate of return of both projects is 11%.

(Hint: Use EAC.)

Year\Project	A	B
0	-$1,000,000	-$850,000
1	300,000	187,500
2	300,000	187,500
3	300,000	187,500
4	300,000	187,500
5	300,000	187,500
6		187,500
7		187,500
8		187,500