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# Project A requires an upfront payment of $2,500 and yearly payments of 80 for 14 years. Project B requires an upfront of $3,000 and a yearly payments of 120 for 8 years. Your cost of capital is 11% which project

Project A requires an upfront payment of $2,500 and yearly payments of 80 for 14 years. Project B requires an upfront of $3,000 and a yearly payments of 120 for 8 years. Your cost of capital is 11% which project should you take?

what is the EEA for project A

what is the EEA for project B

which project should you select A or B

- Expert Answer

## To compare the two projects we need to calculate the present value of all the cash flows for each pr View the full answer

**Related Book For**

## Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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