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 18 percent, and the projects have the following initial investments and cash flows: 
Definitions:
Normal Model
A statistical representation where most occurrences happen around the central peak and probabilities for values decrease as they move away from the mean.
Standard Deviation
A statistical measure of the dispersion or variability in a dataset, indicating how spread out the numbers are from the mean.
Normal Model
A statistical model that describes how data points are distributed around the mean, assuming a symmetrical bell-shaped curve known as the normal distribution.
Scores Between
A reference to evaluating or comparing numerical values or results within a specified range.
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