Question: 8. Wilson Co. is considering two mutually exclusive projects. Both require an initial investment of $9,300 at t = 0. Project X has an expected

8. Wilson Co. is considering two mutually exclusive projects. Both require an initial investment of $9,300 at t = 0. Project X has an expected life of 2 years with after-tax cash inflows of $5,800 and $7,600 at the end of Years 1 and 2, respectively. In addition, Project X can be repeated at the end of Year 2 with no changes in its cash flows. Project Y has an expected life of 4 years with after-tax cash inflows of $4,500 at the end of each of the next 4 years. Each project has a WACC of 11%. What is the equivalent annual annuity of the most profitable project? a. 1,222.50 b. 1,487.34 c. 1,320,30 d. 1,186.87 e. 1,502.36

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