You are considering two mutually exclusive projects with unequal lives. One of the projects has...

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Finance

You are considering two mutually exclusive projects with unequal lives. One of the projects has an up-front cost of $60,000 (CF0= -60,000) and produces positive after-tax cash inflows of $18,000 a year at the end of each of the next 4 years. Assuming the cost of capital is 11.1%, what is the equivalent annual annuity of the project

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