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A manager is considering two project for his company. The Project A has an initial...

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Accounting

A manager is considering two project for his company.

The Project A has an initial cost of $35,000, annual operating cost of $4,000 and life span of four years. The Project B has an initial cost of $39,000, annual operating cost of $4,500 and life span of five years. The company has a required rate of return of 10%. The manager wants to know the equivalent annual cost for each project.

A. Project A $14,190; Project B $13,250

B. Project A $16,788; Project B $15,211

C. Project A $13,452; Project B $12,924

D. Project A $12,623; Project B $11,679

E. Project A $15,041; Project B $14,788

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