Question: ns + Question 53 of 60 Wilson Co. is considering two mutually exclusive projects. Both require an initial investment of $9,100 at t = 0.
ns + Question 53 of 60 Wilson Co. is considering two mutually exclusive projects. Both require an initial investment of $9,100 at t = 0. Project X has an expected life of 2 years with after-tax cash inflows of $5,500 and $8,400 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 $5,500 at the end of each of the next 4 years. Each project has a WACC of 11%. What is the equivalent annual annuity of the most profitable project? Do not round intermediate calculations. a $1.560.61 b. 52,566.83 . C. $2 . d. $2,087.20 e. $3,171.83
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