Question: Prince Inc. is evaluating two mutually exclusive investment projects. Project C has an NPV of R40 000 over a 3 year life, and project D

Prince Inc. is evaluating two mutually exclusive investment projects. Project C has an NPV of R40 000 over a 3 year life, and project D has an NPV of R30 000 over a 5 year life. The project types are equally risky and the firms cost of capital is 12%. Prince Inc. is planning to replace either project indefinitely into the future. The equivalent annual annuity (EAA) for project D is closest to:

R8 322

-R12 490

-R8 322

R12 490

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