A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows:

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A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows:image

Projects X and Y are equally risky and may be repeated indefinitely. If the firm?s WACC is 10%, what is the EAA of the project that adds the most value to the firm? (Round your final answer to the nearest whole dollar.)

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Fundamentals of Financial Management

ISBN: 978-1337395250

15th edition

Authors: Eugene F. Brigham, Joel F. Houston

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