A company is considering a project that requires an initial outlay of $1500$ SEK. The project will produce a first cash$-$flow of $400$ SEK at the end of year $1$ and then the subsequent yearly cash$-$flows will grow at a rate of $2\%$ per year. The project has a lifespan of $6$ years. Suppose that you know that the EAR rate is equal to $4\%.$ What is the EAA of this project?

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Heres how to calculate the Equivalent Annual Annuity EAA of the project 1 Identify the information I... View the full answer