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A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows: Time Cash Flow X Cash Flow Y 0

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

Time Cash Flow X Cash Flow Y
0 -$80,000 -$70,000
1 30,000 35,000
2 55,000 35,000
3 70,000 35,000
4 - 35,000
5 - 5,000

Projects X and Y are equally risky and may be repeated indefinitely. If the firms WACC is 7%, 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 -Select-XYItem 1 , whose EAA = $

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