You are deciding to choose between two mutually exclusive projects.

a. option1: project X will cost $6,000 to install and $3000 a to run year and will last for three years.

b. option 2: project Y will cost $7,000 to install and $2900 a to run year and will last for four years.

Let the WACC = 0.06

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

Which option would you choose option 1 or 2?

Answer for part 5

You are deciding to choose between two mutually exclusive projects .a. oplin 1. project X will cost $8,000 to install and $3000 a lo run year and will last for three years ...option 2: project Y will cost $7,000 to instal and S2900 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 7Which option would you choose option 1 or 2