A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm's production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $24,048.00 per year for 8 years and costs $102,464.00. The UGA-3000 produces incremental cash flows of $27,915.00 per year for 9 years and cost $125,710.00. The firm's WACC is 9.90%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.

Answer rating: 100% (QA)

cash flows of 2404800 per year for 8 years The firms WACC is 990 PVIF... View the full answer