Question: Question 16:practice - Please show work with no excel! Thankyou 16. BB Company has two mutually exclusive investment projects to evaluate. Assume both projects can
Question 16:practice - Please show work with no excel! Thankyou
16. BB Company has two mutually exclusive investment projects to evaluate. Assume both projects can be repeated indefinitely. The following cash flows are associated with each project: Project A Project B Year 0 as as -$100,000 30,000 50,000 70,000 -$70,000 30,000 30,000 30,000 30,000 0,000 2 4 The project types are equally risky and the firm's cost of capital is 12 percent. What is the equivalent annual annuity of the project A? (A) $ 6,857.28
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