Question: You are considering the following 2 mutually exclusive projects. Using the equivalent annual annuity method and a cost of capital of 1 0 % ,
You are considering the following mutually exclusive projects. Using the equivalent annual annuity method and a cost of capital of which project should be selected? Round to nearest R Project A has the following cash flowsyear:Year: year: Project B Year Cash Flow Cashflow year: year: year:year:year:
a
Project B because of an EAA of R
b
Project A because of an EAA of R
c
Project B because of an EAA of R
d
Project A because of an EAA of R
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