Question: Projects A and B are mutually exclusive and have an initial cost of $ 8 7 , 0 0 0 each. Project A has annual

Projects A and B are mutually exclusive and have an initial cost of $87,000 each. Project A has annual cash flows for Years 1 to 3 of $20,000, $15,000, and $87,000,
respectively. Project B has annual cash flows for Year 1 of $88,000 and $15 b) Which project would you select using the NPV method at 12% after adjusting for the unequal lives?

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