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 $24,106.00 per year for 8 years and costs $101,909.00. The UGA-3000 produces incremental cash flows of $28,601.00 per year for 9 years and cost $123,561.00. The firms WACC is 9.80%. What is the equivalent annual annuity of the GSU-3300? 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 $25,262.00 per year for 8 years and costs $104,804.00. The UGA-3000 produces incremental cash flows of $29,851.00 per year for 9 years and cost $124,932.00. The firms WACC is 8.49%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes.