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A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows: Projects x and Y are equally risky and

A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows:

Projects

x

and

Y

are equally risky and may be repeated indefinitely. If the firm's WACC is

11 %,

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.

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