Kizspy | Question: 26
(Choose 1 answer)
Calculate the equivalent annual cost (EAC) of this two projects if discount rate is 10%. (Round off to the nearest decimal point)
Year Project A
0
1
2
-80,000 0
32,000 1
40,000
2
3 10,000 3
4
22,000
4
Project B
-30,000
15,000
27,000
A. Project A: $2,355; Project B: $1,737
B. Project A: $1,259; Project B: $1,439
C. Project A: $1,875; Project B: $1,537
D. Project A: $1,479; Project B: $1,877
Year