This is a show your work problem in three (3) parts. Your answer must be clear and you must show your work for each part to receive full credit. The document you upload must be in pdf format.

Use these cash flows to answer the following questions:

Year 0 1 2 3 4 5 6

A (4,000) 800 1,400 1,300 1,200 1,100 1,000

B (2,000) 700 1,300 1,200 0 0 0

1. Calculate the NPV for projects A and B using a 20 percent discount rate (write the calculate keys that you use to get the answer).

2. Calculate the Equivalent Annual Annuity (EAA) for projects A and B using a 20 percent discount rate (write the calculate keys that you use to get the answer).

3. If the projects were mutually exclusive which project would you choose and which decision criteria would you use and why.

22. (10 Points) This is a show your work problem in three (3) parts. Your answer must be clear and you must show your work for each part to receive full credit. The document you upload must be in pdf format. Use these cash flows to answer the following questions: Year 0 1 2 3 4 5 6 A (4,000) 800 1,400 1,300 1,200 1,100 1,000 B (2,000) 700 1,300 1,200 0 0 0 1. Calculate the NPV for projects A and B using a 20 percent discount rate (write the calculate keys that you use to get the answer). 2. Calculate the Equivalent Annual Annuity (EAA) for projects A and B using a 20 percent discount rate (write the calculate keys that you use to get the answer). 3. If the projects were mutually exclusive which project would you choose and which decision criteria would you use and why