Problem:
Two Projects with unequal length and cost of capital 10%. Which is the best project and please show the steps how to solve for equivalent annual annuity in unequal projects.
Yr. 0 Project 1: ($150,000) Project 2: ($200,000)
1 $80,000 $40,000
2 $60,000 $50,000
3 $50,000 $50,000
4 $60,000
5 $50,000
6 $53,000
Please show steps to solve.