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A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows: Time After-tax Cash Flow X After-tax Cash
A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows: Time After-tax Cash Flow X After-tax Cash Flow Y 0 -$95,000 -$80,000 1 30,000 40,000 2 60,000 40,000 3 70,000 40,000 4 40,000 5 10,000 Projects X and Y are equally risky and may be repeated indefinitely. If the firm's WACC is 14%, what is the EAA of the project that adds the most value to the firm? Do not round intermediate calculations. Round your answer to the nearest dollar. Choose Project Y whose EAA = $ 50128
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