Question: You are considering two mutually exclusive projects with unequal lives. One of the projects has an up - front cost of $ 4 4 ,

You are considering two mutually exclusive projects with unequal lives. One of the projects has an up-front cost of $44,000(CF0=-44,000) and produces positive after-tax cash inflows of $22,000 a year at the end of each of the next 7 years. Assuming the cost of capital is 8.7%, what is the equivalent annual annuity of the project?
A)$10,075
B) $10,735
C) $11,545
D) $12,535
E) $13,345
F) $14,035

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