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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

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 $24,248.00 per year for 8 years and costs $102,329.00. The UGA-3000 produces incremental cash flows of $27,976.00 per year for 9 years and cost $124,459.00. The firms WACC is 9.07%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes.

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 $25,296.00 per year for 8 years and costs $103,518.00. The UGA-3000 produces incremental cash flows of $29,384.00 per year for 9 years and cost $123,949.00. The firms WACC is 9.60%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.

A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,250.00 to install, $5,074.00 to operate per year for 7 years at which time it will be sold for $6,955.00. The second, RayCool 8, costs $41,378.00 to install, $2,059.00 to operate per year for 5 years at which time it will be sold for $8,932.00. The firms cost of capital is 5.30%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.

A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,916.00 to install, $5,160.00 to operate per year for 7 years at which time it will be sold for $7,124.00. The second, RayCool 8, costs $41,820.00 to install, $2,080.00 to operate per year for 5 years at which time it will be sold for $9,074.00. The firms cost of capital is 6.69%. What is the equivalent annual cost of the AC360? Assume that there are no taxes.

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