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You are thinking about buying a new machine or a used one. Because the projects don't have equal lives you decide to calculate the Equivalent Annual Annuity of the used machine, whose cashflows are below. If your opportunity cost of capital is 9%, what is the Equivalent Annual Annuity (EAA) of the used machine? Year Used machine t = 0 -700 1 +200 2 +250 3 +280 4 +320 You are thinking about buying a new machine or a used one. Because the projects don't have equal lives you decide to calculate the Equivalent Annual Annuity of the used machine, whose cashflows are below. If your opportunity cost of capital is 9%, what is the Equivalent Annual Annuity (EAA) of the used machine? Year Used machine t = 0 -700 1 +200 2 +250 3 +280 4 +320
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Related Book For
Accounting for Decision Making and Control
ISBN: 978-1259564550
9th edition
Authors: Jerold Zimmerman
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