You are given the choice between two mutually exclusive projects:

Project A: $ $21,000$ initial investment

$ $6,500$ a year NCF for $6$ years

Project B: $ $25,000$ initial investment

$ $5,500$ a year in NCF for $9$ years

If the cost of capital is $5\mathrm{.}6\%,$ which project should you select if you will need this capacity for the

indefinite future. Explain the basis for your decision. A number alone is not sufficient.

Since these two projects have different lives, you need to make the decision based on their equivalent

annual annuity$($EAA$).$

Here are the answers:

NPV of A $=$ $$11368\mathrm{.}28$

NPV of B $=$ $$13069\mathrm{.}30$

Please explain how to solve for the EAA below using a BAii Plus Financial calculator. SHOW ALL STEPS. $($the numbers below are the correct answers$)$

EAA of A $=$ $$2282\mathrm{.}91$

EAA of B $=$ $$1888\mathrm{.}17$