The final two mutually exclusive projects that Caledonia is considering involve mutually exclusive

final two mutually exclusive projects that Caledonia is considering
involve mutually exclusive pieces of machinery that perform the same
task. The two alternatives available provide the following set of
after-tax net cash flows:

Year Equipment A Equipment B

0 -$100,000 -$100,000

1 65,000 32,500

2 65,000 32,500

3 65,000 32,500

4 32,500

5 32,500

6 32,500

7 32,500

8 32,500

9 32,500

The
equipment has an expected life of 3 years, whereas equipment B has an
expected life of 9 years. Assume req’d Rate of return is 14%