Question: A firm has two mutually exclusive investment projects to evaluate; both can be repeated indefinitely. The projects have the following cash flows: Projects X and

A firm has two mutually exclusive investment projects to evaluate; both can be repeated indefinitely. The projects have the following cash flows:

Projects X and Y are equally risky and may be repeated indefinitely. If the firm€™s WACC is 12%, what is the EAA of the project that adds the most value to the firm? (Round your final answer to the nearest whole dollar.)

Time Size $70,000 30,000 30,000 30,000 30,000 10,000 $100,000 30,000 50,000 70,000

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