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A firm is must choose to buy the GSU - 3 3 0 0 or the UGA - 3 0 0 0 . Both machines
A firm is must choose to buy the GSU or the UGA Both machines make the firms production process more efficient which in turn increases incremental cash flows. The GSU produces incremental cash flows of $ per year for years and costs $ The UGA produces incremental cash flows of $ per year for years and cost $ The firms WACC is What is the equivalent annual annuity of the GSU Assume that there are no taxes.
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