Question: same question different parts, so please answer all 3. Unequal project lives ABC Telecom has to choose between two mutually exclusive projects. If it chooses

same question different parts, so please answer all  same question different parts, so please answer all 3. Unequal project
lives ABC Telecom has to choose between two mutually exclusive projects. If

3. Unequal project lives ABC Telecom has to choose between two mutually exclusive projects. If it chooses project A, ABC Telecom will have the opportunity to make a similar investment in three years. However, if it chooses project B, it will not have the opportunity to make a second investment. The following table lists the cash flows for these projects. If the firm uses the replacement chain (common life) approach, what will be the difference between the net present value (NPV) of project A and project 8, assuming that both projects have a weighted average cost of capital of 11%? Cash Flow Project A Project B Year : Year : -$15,000 -$40,000 8,000 Year 1: 9,000 Year 1: Year 2: 15,000 Year 2: 16.000 Year 3: 14,000 Year 3: 15,000 Year 4: 12,000 11,000 Year 5: Year 6: 10,000 $13,538 O $14,334 O $15,927 $9,556 $12.742 ABC Telecom is considering a five-year project that has a weighted average cost of capital of 14% and a NPV of $80.720. ABC Telecom can replicate this project indefinitely. What is the equivalent annual annuity (EAA) for this project? 525,863 527,099 523,512 $28,214 $19.955

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