Norman Inc. is considering two mutually exclusive projects. Project A is a six

Norman Inc. is considering two mutually exclusive projects. Project A is a six-year project with a NPV of $3000 and Project B is a four-year project with an
NPV of $2278. Project A has an equivalent annual cash flow of $730 and Project B has an equivalent annual cash flow of $750. Which project should the firm
select?

A. Choose Project A because it has the higher NPV.

B. Choose Project B because it has the lower NPV.

C. Choose Project B because it has the higher equivalent annual cash flow.

D. Choose Project A because it has the lower equivalent annual cash flow.