Question: You are considering replacing the air conditioning unit for your company. You have 2 options. Option A has an NPV of -$2400 and lasts 5

You are considering replacing the air conditioning unit for your company. You have 2 options. Option A has an NPV of -$2400 and lasts 5 years and option B has an NPV of -$4000 and lasts 10 years. If the appropriate discount rate is 8%, using an EAC approach which should you choose (A or B)?

A

B

Both

Neither

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