Question: 7. Unequal project Itves Widget Corp. has to choose between two mutualiy exclusive projects. If it chooses project A, Widget Corp. will have the opportunity

7. Unequal project Itves Widget Corp. has to choose between two mutualiy exclusive projects. If it chooses project A, Widget Corp. will have the opportunity to make a similiar investment in three years. However, if it chooses project B, it will not have the opportunity to make a second investment. The foliowing table lists the cash flows for these projects. It the firm uses the replacement chain (common life) approach, whot will be the difference between the net present walise (NPV) of project A and project B, assuming that both projects have a weighted average cost of capital of 12% ? $10,630 $7,504 $12,506 58,754 59,380 Wiaget Corp. Is considering a three 'year project that has a weighted average cost of capital of 12% and a NPV of 549,876 . Widget corp. can replicate this project indehinitely. What is the equivatent annual annuity (EAA) for this project? 319,728 $17,651 $23,881 120,766 521,004
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