Project A has expected annual cashflows of $48,000 over a 7-year life while Project B...
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Project A has expected annual cashflows of $48,000 over a 7-year life while Project B has expected cashflows of $61,000 over a 5-year life. Both projects have a $150,000 cost. The cost of capital is 9.5%.
A. What is the equivalent annual annuity for Project A?
B. What is the equivalent annual annuity for Project B?
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