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$12,339 $18,097 $16,452 $14,807 $13,162 Alled Biscuit Co. is considering a five-year project that has a weighted average cost of capital of 12% and a

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$12,339 $18,097 $16,452 $14,807 $13,162 Alled Biscuit Co. is considering a five-year project that has a weighted average cost of capital of 12% and a NPV of $56,489. Allied Bisciit Co, can replicate this project indefinitely. What is the equivalent annual annuity (EAA) for this project? $19,589 $17,238 $16,455 $18,805 $15,671 Allied Biscult Co, has to choose between two mutually exclusive projects. If it chooses project A, Allied Biscuit Co. will have the opportunity to make a simslar investment in three years. However, if it chooses project B, it will riot have the opportunity to make a second investment. The following table lists the cash flows for these projects. If the firm uses the replacement chain (common life) approach, what will be the difference between the net present value (NPV) of project A and project B, assuming that both projects have a weighted average cost of capital of 11% ? $12,339 $18,097 $16,452

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