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6. Find the annuity which is equivalent each of the above investments NPV (questions 3 and 4). Based on the annuity equivalent, which investment is
6. Find the annuity which is equivalent each of the above investments NPV (questions 3 and 4). Based on the annuity equivalent, which investment is better? Why? 7. Based on the information so far, which one would you choose? Why? 8. Now assume that the Saw Mill investment is much more risky with regard to the expected cash flows and to the salvage value of the equipment than the Tractor and Mower is. What would you change in your analysis to compare the two investments if that were the case?
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