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:
Consumption Sector
The part of the economy that involves the purchase and use of goods and services by households.
Social Security
A government program that provides financial support to people who are retired, disabled, or survivors of deceased workers.
Payroll Tax
Assessments required from employers or their employees, usually expressed as a percentage of the remuneration that staff earn.
Federal Income Taxes
Taxes levied by the national government on individual and business earnings.
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