Assume that an analysis of a 3 year capital investment project results in an NPV of...

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Assume that an analysis of a 3 year capital investment project results in an NPV of $725.00 using a discount rate That just happens to be equal to the numeric 5th digit of your OSU ID CWID number plus 1 converted to a percentage (for example, if your CWID Is A20232***, then the discount rate used was 3%). An analysis of an alternative 5 year capital investment project results in an NPV of $845.00 using the same discount rate used in the 3 year project. Calculate the annuity equivalent of each of these projects and tell me which one is the preferred project. Assume that an analysis of a 3 year capital investment project results in an NPV of $725.00 using a discount rate That just happens to be equal to the numeric 5th digit of your OSU ID CWID number plus 1 converted to a percentage (for example, if your CWID Is A20232***, then the discount rate used was 3%). An analysis of an alternative 5 year capital investment project results in an NPV of $845.00 using the same discount rate used in the 3 year project. Calculate the annuity equivalent of each of these projects and tell me which one is the preferred project.

Answer rating: 100% (QA)

SOLUTION My OSU CWID is A20232 so the 5th digit is 2 The ... View the full answer