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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
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 $26,658 per year for 8 years and costs $101,088. The UGA-3000 produces incremental cash flows of $28,633 per year for 9 years and cost $126,942. The firms WACC is 8.7%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes. Currency: Round to: 2 decimal places.
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