Question
A) 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
A) 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 $26,090.00 per year for 8 years and costs $103,228.00. The UGA-3000 produces incremental cash flows of $28,628.00 per year for 9 years and cost $126,039.00. The firms WACC is 9.68%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.
B) 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 $25,355.00 per year for 8 years and costs $102,768.00. The UGA-3000 produces incremental cash flows of $27,254.00 per year for 9 years and cost $126,815.00. The firms WACC is 9.99%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes.
Answer format: Currency: Round to: 3 decimal places.
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Options Trading For Beginners How To Generate Predictable Income And Make A Living Without Taking Big Risks Even If You Re A Complete Beginner
Authors: Greg Middleton
1st Edition
979-8866955046
