TUTORIAL TOPIC $3$

A firm is evaluating two mutually exclusive projects that have

unequal lives. The firm must evaluate the projects using the

annualized net present value approach and recommend which

project they should select. The firm's cost of capital has been

determined to be $14$ percent, and the projects have the following

initial investments and cash flows:

A$)$ Choose Project R because its ANPV is $$6459$

B$)$ Choose Project S because its ANPV is $$6459$

C$)$ Choose Project R because its ANPV is $$18,274$

D$)$ Choose Project S because its ANPV is $$10,637$