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 $24,925.00 per year for 8 years and costs $100,625.00. The UGA-3000 produces incremental cash flows of $28,192.00 per year for 9 years and cost $126,353.00. The firms WACC is 7.36%. 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 $25,929.00 per year for 8 years and costs $100,420.00. The UGA-3000 produces incremental cash flows of $28,543.00 per year for 9 years and cost $124,241.00. The firms WACC is 9.21%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes.