Hubbard, Inc. is considering Project A and Project B, which are two mutually exclusively 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. Hubbard uses the equivalent annual annuity (EAA) method and has a discount rate of 11.50%. Which, if any, project will Hubbard accept?

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The Answer of Hubbard, Inc. is considering Project A and Project B, which are two mutually exclusively 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. Hubbard uses the equivalent annual annuity (EAA) method and has a discount rate of 11.50%. Which, if any, project will Hubbard accept?