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12-5. For two projects A and B, both have an initial capital outlay of $20,000...

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Accounting

12-5. For two projects A and B, both have an initial capital outlay of $20,000 at T=0, Project A has 6 years physical lifetime with an annual cash flow of $6,000. Project B has 3 years physical lifetime with the same $6,000 annual cash flow. If the discount rate is 10%, which project should be chosen if using EEA (Equivalent Annual Annuity) approach to calculate?

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