Projects A and B are mutually exclusive projects with unequal lives. The cost of capital is $10\%$ for both projects.

$\backslash$table$[[,0,1],[$Project A:$,35]]$

What is the equivalent annual annuity $($EAA$)$ for project $A?$

A$)$ $$23$

B$)$ $$17$

C$)$ $$13$

D$)$ $$11\mathrm{.}818$

What is the equivalent annual annuity $($EAA$)$ for project $B?$

A$)$ $$12\mathrm{.}55$

B$)$ $$15\mathrm{.}48$

C$)$ $$26\mathrm{.}86$

D$)$ $$14\mathrm{.}02$

The decision is to accept

A$)$ Project B

B$)$ Project A

C$)$ Neither project is acceptable

D$)$ Not enough information is provided to make a decision

In the presence of capital rationing in capital budgeting, the profitability inde can be used to rank and select the competing projects if the projects are indivisible.

A$)$ True

B$)$ False