33 #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 $24,353.00 per year for 8 years and costs $101,377.00. The UGA-3000 produces incremental cash flows of $28,934.00 per year for 9 years and cost $123,915.00. The firms WACC is 7.95%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.

Answer format: Currency: Round to: 2 decimal places.