Question: After calculating the Equivalent Annual Annuity ... Type the equivalent-annual-annuity of the project you would choose (A or B)? Assume the discount rate is 5%.
After calculating the Equivalent Annual Annuity ... Type the equivalent-annual-annuity of the project you would choose (A or B)? Assume the discount rate is 5%. Year 0 1 2 Project A Project B $(145,588) $(107,624) $65,858 $63,554 $76,746 $81,623 $46,554 $46,616 $77,215 3 4 5 ***Hint: Use five years for Project A and two years for Project B as the life of the EAA (Assumption: Projects are renewable indefinitely)
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