A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firms production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $24,882.00 per year for 8 years and costs $103,203.00. The UGA-3000 produces incremental cash flows of $27,305.00 per year for 9 years and cost $126,304.00. The firms WACC is 9.44%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.

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#4

A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firms production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $25,568.00 per year for 8 years and costs $103,186.00. The UGA-3000 produces incremental cash flows of $27,400.00 per year for 9 years and cost $126,856.00. The firms WACC is 9.62%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes.

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Answer format: Currency: Round to: 2 decimal places.