Widget Corp. has to choose between two mutually exclusive projects. If it chooses project A, Widget Corp. will have the opportunity to make a similar Investment in three years. However, if it chooses project B, it will not have the opportunity to make a second investment. The following table lists the cash flows for these projects. If the firm uses the replacement chain (common life) approach, what will be the difference between the net present value (NPV) of project A and project B, assuming that both projects have a weighted average cost of capital of 11%? Cash Flow Project A Year o: Year 1: Year 2: Year 3: -$10,000 7,000 15,000 14000 Project Year 0: Year 1: Year 2: Year 3: car 4: Year 5: Year 6: -$40,000 8,000 15,000 14,000 13,000 12,000 11,000 $19,097 $16,975 512,731 $21,219 $13,792 Widget Corp. is considering a five-year project that has a weighted average cost of capital of 13% and a NPV of $30,450. Widget Corp. can replicate this project indefinitely. What is the equivalent annual annuity (EAA) for this project? $10,388 Year 1: Year 1: 7,000 15,000 8,000 Year 2: Year 2: Year 3: 14000 Year 3: 15,000 14,000 13,000 12,000 Year 4: Year 5: Year 6: 11,000 $19,097 $16,975 $12,731 $21,219 $13,792 Widget Corp. is considering a five-year project that has a weighted average cost of capital 13% and a NPV of $30,450. Widget Corp can replicate this project indefinitely. What is the equivalent annual annuity (EAA) for this project? a $10,388 $9.523 $7,791 57,358 58,657