Question: Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more 4. Unequal project lives Aa Aa
Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more 4. Unequal project lives Aa Aa Galaxy Corp. has to choose between two mutually exclusive projects. If it chooses project A, Galaxy Corp. will have the opportunity to make a similar investment in three years. However, if it chooses project B, it will not have the opportunity to make a second investment. The following table ists the cash flows for these projects. If the firm uses the replacement chain (common life) approach, what will be the difference betweern the net present value (NPV) of project A and project B, assuming that both projects have a weighted average cost of capital of 10%? Cash Flow Project A Project B Year O: Year 1: Year 2: Year 3 $12,500 $8,000 $14,000 13,000Year 3 Year 0: Year 1: Year 2: $45,000 $10,000 $17,000 16,000 $15,000 $14,000 $13,000 Year 4: Year 5: Year 6: so,598 O $11,776 $10,010 O $8,832 $7,066 Galaxy Corp. is considering a five-year project that has a weighted replicate this project indefinitely. What is the equivalent annual annuity (EAA) fer this project? average cost of capital of 13% and a NPV of $30,450, Galaxy Corp. can $10,388 o $9,956 O $8,224 O $9,523 O $8,657 O Type here to search Sc
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