Question: Wilson Co. is considering two mutually exclusive projects. Both require an initial investment of $9,100 a 0. Project X has an expected life of 2
Wilson Co. is considering two mutually exclusive projects. Both require an initial investment of $9,100 a 0. Project X has an expected life of 2 years with a ter tax cash innows of $5.500 and 57, 500 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 has an expected life of 4 years with after tak cash inflows of $5,300 at the end of each of the next 4 years. Each project has a WACC of 10%. What is the equivalent annual annuity of the most profitable project? Do not round Intermediate calculations a $2,959.22 b. $1,209.05 C. $2.429.22 d. $2,690.20 c. $1,685.71
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