Question: Two mutually exclusive projects being considered by a firm and have the following projected cash flows: Project A Project B Year Cash Flow Cash

Two mutually exclusive projects being considered by a firm and have the

Two mutually exclusive projects being considered by a firm and have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow ($120,000) ($120,000) 55,000 55,000 55,000 0 1 23456 30,000 30,000 30,000 30,000 30,000 30,000 The cost of capital is 10 percent. Using the NPV rule, evaluate both projects using the equivalent annual annuity approach

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