A firm is evaluating two mutually exclusive projects that have unequal lives. The firm must evaluate the projects using the annualized net present value approach and recommend which project they should select. The firm's cost of capital has been determined to be 14 percent, and the projects have the following initial investments and cash flows: 
Definitions:
Law of Comparative Advantage
The principle that a country should specialize in producing and exporting goods in which it has the lowest opportunity cost and import goods in which it has a comparative disadvantage.
Specialization
The process of focusing on a limited range of goods or services to gain efficiency or expertise.
Trading Partners
Countries, organizations, or individuals that engage in the exchange of goods, services, or information.
Joint Output
Products or services that are produced together in the course of a single production process, often resulting in a correlation between their quantities or prices.
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