Briarwood Company is using the equivalent annual annuity method to decide which project to accept. Project...
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Briarwood Company is using the equivalent annual annuity method to decide which project to accept. Project A has an NPV of $3,451 and a life of 5 years. Project B has an NPV of $5,642 and a life of 3 years. Considering the company has a WACC of 9%, what is the EAA of each project and which one should Briarwood Company accept? a. Project A, $864.32 and Project B, $2,228.90; Briarwood should accept Project A. b. Project A, $864.32 and Project B, $2,228.90; Briarwood should accept Project B c. Project A, $887.23 and Project B, $864.32; Briarwood should accept both projects. d. Project A, $887.23 and Project B, $2,228.90; Briarwood should accept Project A Oe. Project A, $887.23 and Project B, $2,228.90; Briarwood should accept Project B Briarwood Company is using the equivalent annual annuity method to decide which project to accept. Project A has an NPV of $3,451 and a life of 5 years. Project B has an NPV of $5,642 and a life of 3 years. Considering the company has a WACC of 9%, what is the EAA of each project and which one should Briarwood Company accept? a. Project A, $864.32 and Project B, $2,228.90; Briarwood should accept Project A. b. Project A, $864.32 and Project B, $2,228.90; Briarwood should accept Project B c. Project A, $887.23 and Project B, $864.32; Briarwood should accept both projects. d. Project A, $887.23 and Project B, $2,228.90; Briarwood should accept Project A Oe. Project A, $887.23 and Project B, $2,228.90; Briarwood should accept Project B
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