The following two mutually exclusive projects are being evaluated. The firm's required rate of return is 12% Year Project A Cash Flow Project B Cash Flow o -$48,000 -$48,000 1 15,000 20,000 2 15,000 20,000 3 15,000 15,000 4 15,000 5,000 5 15,000 5,000 6 5,000 7 5,000 Which of the following statements best describes projects A and B? Project A should be accepted because it has the highest EAA. Neither project is acceptable. Project B should be accepted because it has the highest NPV, Project B should be accepted because it has the highest EAA. Both projects should be accepted because they have positive NPVs and EAAS. Previous