Question: Zeta, Inc., has identified the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow A -$20,500 10,500 15,500 Cash Flow B

Zeta, Inc., has identified the following two mutually exclusive projects:

Year 0 1 2 3 4
Cash Flow A -$20,500 10,500 15,500
Cash Flow B -$20,500 5,700 10,500 12,000 15,500

Use both the equal lives method and the equivalent annuity method to determine which project the company should implement.

Discount Rate: 12%

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