3. A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firms production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $24,758.00 per year for 8 years and costs $101,417.00. The UGA-3000 produces incremental cash flows of $29,738.00 per year for 9 years and cost $125,220.00. The firms WACC is 8.71%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes

4.

A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firms production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $26,667.00 per year for 8 years and costs $102,878.00. The UGA-3000 produces incremental cash flows of $29,004.00 per year for 9 years and cost $124,117.00. The firms WACC is 9.17%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes.