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

With the method solution

With the method solution You are deciding to
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 Y 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 1 or 2

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