Ch 12-Assignment-Cash Flow Estimation and Risk Analysis Globex Corp. has to choose between two mutually exclusive projects. If it chooses project A, Globex Corp. will have the opportunity to make a similar investment in three years. However, if it chooses project 8, it will not have the opportunity to make a second investment. The following table lists the cash flows for these projects. If the firm uses the replacement chain (common life) approach, what will be the difference between the net present value (NPV) of project A and project B, assuming that both projects have a weighted average cost of capital of 12% to seards Cash Flow Project A Project B Year O Year 1: -$10,000 Year 0: -$45,000 7,000 Year 1 10,000 Year 2 15,000 Year 2 17,000 Year 35 14000 Year 3 16,000 Year 4: 15,000 Year 5: Year 14,000 13,000 112,723 $10,176 $14.541 $16,356 $13.632 Globex Carp considering a four-year project that has a weighted average cost of capital of 12% and a Ny of 129,567, Globes Corp can replicate this project indefinitely what is the equivalent annual annuity (EAA) for the projec N Dill 3 4 E 40 655 335F A P Home Brud 8226 700 ew. 2 % S 6 160 & 7 8 9 0 R T D F G H U C V B N M K P 7 Year 0: -$10,000 Year 0: -$45,000 Year 1: 7,000 Year 1: 10,000 1 Year 2: 15,000 Year 2 17,000 Year 3: 14000 Year 3: 16,000 Year 4: 15,000 Year 5:1 14,000 1 Year 6: 13,000) O $12.723 O $18,176 $14,541 $16,359 O $13,632 Globex Corp. is considering a four-year project that has a weighted average cost of capital of 12% and NPV of 129,567. Globex Corps can replicate this project indefinitely. What is the equivalent annual annuity (EAA) for this project? search $9,734 $10,221 $10,702 OSLABL $9.247 0 659 bil 9 4. Prison Home End " " " M 131 $ % 3 4 5 96 &7 8 E R T Y U 69 0 0 P D LL F G H J K C V B N M