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A firm is evaluating a 5-year project that costs $420,000 and has annual net cash flows of $103,475 per year. The firms cost of capital

A firm is evaluating a 5-year project that costs $420,000 and has annual net cash flows of $103,475 per year. The firms cost of capital is 8%. What is the equivalent annual annuity of the project?

  • -$6,854

  • $413,145

  • -$1,717

  • -$833,146

  • $25,916

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