You are evaluating two mutually exclusive projects. Project Eve$$has an initial outlay of $$10,000,$ an NPV of $$4,392\mathrm{.}15,$ an IRR of $11\mathrm{.}33\%,$ and an EAA of $$1,158\mathrm{.}64.$ Project Adam$$has an initial outlay of $$15,000,$ an NPV of $$5,833\mathrm{.}73,$ an IRR of $9\mathrm{.}88\%,$ and an EAA of $$1,093\mathrm{.}50.$ The cost of capital for both projects is $9\%,$ and the projects have different lives.

You should do both projects because they each have positive a NPV$.$You should do Project Adam because it has a higher NPV$.$You should do Project Eve because it has a higher EAA.You should do Project Adam because it has a higher IRR.You should do no projects because neither add value to the firm.

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