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25. You are evaluating two different projects. Project A costs $50,000, has a 3-year life,...

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Accounting

25. You are evaluating two different projects. Project A costs $50,000, has a 3-year life, and a cash inflow of $20,000 per year for 3 years. Project B costs $60,000, has a 5-year life, and a cash inflow of $15,000 per year for 5 years. The relevant discount rate is 6% p.a. Compute the Equivalent Annual Benefit (EAB) for each project. Which project is preferred?

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