You are deciding to choose between three mutually exclusive projects . a. option1: project X will cost $ 5000 to install and $ 4200 a year to run and will last for three years. b. option 2: project Y will cost $6000 to install and $3800 a year to run and will last for four years. . option 3: project Z will cost $10,000 to install and $ 500 a year to run and will last forever. Let the WACC =0.08 Estimate the NPV of project X.Answer for part 1 Estimate the equivalent annuity cost of project X. Answer for part 2 Estimate the NPV of project Y.Answer for part 3 Estimate the equivalent annuity cost of project Y.

Answer for part 4

Estimate the NPV of project Z.

Answer for part 5

Estimate the equivalent annuity cost of project Z.

Answer for part 6