Ace,Inc.is considering Project A and Project B,which are two mutually exclusive projects with unequal lives.Project A is an eight-year project that has an initial outlay or cost of $18,000.Its future cash inflows for years 1 through 8 are the same at $3,800.Project B is a six-year project that has an initial outlay or cost of $16,000.Its future cash inflows for years 1 through 6 are the same at $3,600.Ace uses the equivalent annual annuity (EAA)method and has a discount rate of 11.50%.Which,if any,project will Ace accept?

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The Answer of Ace,Inc.is considering Project A and Project B,which are two mutually exclusive projects with unequal lives.Project A is an eight-year project that has an initial outlay or cost of $18,000.Its future cash inflows for years 1 through 8 are the same at $3,800.Project B is a six-year project that has an initial outlay or cost of $16,000.Its future cash inflows for years 1 through 6 are the same at $3,600.Ace uses the equivalent annual annuity (EAA)method and has a discount rate of 11.50%.Which,if any,project will Ace accept?

Ace,IncIs Considering Project a and Project B,which Are Two Mutually