Consider the following two mutually exclusive projects, X and Y, and their cash flows information:

Project Year 0 Year 1 Year 2 Year 3 Year 4 

Project X: ($1,400), $350, $750, $650, $650

Project Y: ($1,000), $300, $400, $500, $600

Calculate the Equivalent Annual Cashflow (“EAC”) for project X. (The answer is $127.13 but please show steps/explain how you get this calculation)

Answer rating: 100% (QA)

To calculate the Equivalent Annual Cashflow EAC for Project X we need to find the equivalent annual ... View the full answer