Question: Check My Work Wilson Co. is considering two mutually exclusive projects. Both require an initial investment of $9,100 atto. Project & has a expected
Check My Work Wilson Co. is considering two mutually exclusive projects. Both require an initial investment of $9,100 atto. Project & has a expected life of 2 years with after-tax cash inflows of $5,500 and $9,500 at the end of Years 1 and 2. respectively. In addition, Project X can be repeated at the end of Year 2 with no changes in its cash flows. Project Y has an expected life of 4 years with after-tax cash inflows of $5,200 at the end of each of the next 4 years. Each project has a WACC of 12%. What is the equivalent annual annuity of the most profitable project? Do not round intermediate calculations. a. $2.524.97 Ob $2,203.97 $2.888.75 Od. $2,579.25 e. $2,002:34
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