Question: Why is the answer B? step by step please The Smith Company is considering two mutually exclusive investments that would increase its capacity to make

Why is the answer B? step by step please

The Smith Company is considering two mutually exclusive investments that would increase its capacity to make strawberry tarts. The firm uses a 12 percent cost of capital to evaluate potential investments. The projects have the following costs and cash flow streams: YEAR ALTERNATIVE A ALTERNATIVE B $ -50,000 $ -50,000 19,000 13,000 19,000 13,000 19,000 13,000 19,000 13,000 13,000 13,000 13,000 13,000 oo van AWN-0 What are the respective EQUIVALENT ANNUAL ANNUITIES for alternatives A and B? ALTERNATIVEA ALTERNATIVE B a. $ 7,873 $ 6,455 6. $ 2,538 $ 2,935 c. $ 2,538 $ 9,463 d. $ 9,261 $ 9,463 .e. $ 7,873 $ 2,935

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