Question: with solution method You are deciding to choose between two mutually exclusive projects. a. option1: project X will cost $6,000 to install and $3200 a

with solution method with solution method You are deciding to choose between two mutually exclusive

You are deciding to choose between two mutually exclusive projects. a. option1: project X will cost $6,000 to install and $3200 a to run year and will last for three years. b option 2: project will cost $7,000 to install and $2800 a to run year and will last for four years. Let the WACC =0.06 Estimate the NPV of project X Estimate the Equivalent annuity cost of project X Estimate the NPV of project Y. Estimate the equivalent annuity cost of project Y Which option would you choose option for 28

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