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What is the EAC of two projects: project A, which costs $150 and is expected to...

What is the EAC of two projects: project A, which costs $150 and is expected to last two years, and project B, which costs $190 and is expected to last three years? The cost of capital is 12%.

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Year 0 1 2 Equivalent Annual Cost(Project A) cash flows pv @ 12% -$150.00 1.0000 $0.00 0.8929 $0.00 0.7972 NPV Present value

Year Equivalent Annual Cost(Project B) cash flows pv @ 12% -$190.00 1.0000 $0.00 0.8929 $0.00 0.7972 $0.00 0.7118 NPV Present

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