Question: Task 5: The firm is evaluating two mutually exclusive projects (see information in the table below). Assume that the projects are equally risky. The cost

Task 5: The firm is evaluating two mutually exclusive projects (see

Task 5: The firm is evaluating two mutually exclusive projects (see information in the table below). Assume that the projects are equally risky. The cost of capital is 12%. Net present value Life cycle Project A 22,000 3 years Project B 25,000 5 years 1) Calculate the effective annual annuity (EAA) for each project. 2) Using the EAA decision rule, which project should the firm choose

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=+f. Does it promise a benefit or solve a problem?

=+How do they reach out and tap you on the arm like a good friend about to confide a secret?

=+ Why do some seem like a personalized, individual message?