Question
25. Consider the following cash flows for a project: Year After-tax cash flow 0 -$5,000 1 1,800 2 1,800 3 2,250 4 3,000 Assuming the
25. Consider the following cash flows for a project:
| Year | After-tax cash flow |
| 0 | -$5,000 |
| 1 | 1,800 |
| 2 | 1,800 |
| 3 | 2,250 |
| 4 | 3,000 |
Assuming the weighted average cost of capital is 8.0%, what is the equivalent annual annuity for this project?
Group of answer choices
a. $664.55
b. $893.20
c. $1,204.91
d. $1,823.48
e. $2,201.55
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Principles Of Corporate Finance
Authors: Richard Brealey
10th Global Edition
0071314172, 9780071314176
