Question: Your firm is considering two different projects that are mutually exclusiveand they will be replaced once the project is over (Hint: you should calculatethe EAA
Your firm is considering two different projects that are mutually exclusiveand they will be replaced once the project is over (Hint: you should calculatethe EAA to decide which is the better project for this problem). Given a required return of 12%, which project should your firm undertake?

Time Project A-$25,000$15,000$20,000 $20,000 Project B-$25,000$11,000$11,000$11,000 $11,000 0 2 3 4
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