Project X and Project Y are mutually exclusive projects under consideration by a firm. Project X has a 5-year life and Project Y has a 6-year life. There is an indefinite need for one of the projects. Project X require an initial investment of $35,900 and is expected to generate net cash inflows of $9,000 in Year 1, $10,000 in Year 2, and $11,000 each year in Years 3, 4, and 5. Assume Project X has a 10% cost of capital. What is the equivalent annual annuity, EAA, for Project X?

Select one:

a. $3,154.03

b. $2,902,45

c. $832.02

d. $1,733.92

e. $728.37