Question
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 $25,494.00 per year for 8 years and costs $100,998.00. The UGA-3000 produces incremental cash flows of $28,978.00 per year for 9 years and cost $124,802.00. The firms WACC is 8.44%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.
SubmitAnswer format: Currency: Round to: 2 decimal places.
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 $25,494.00 per year for 8 years and costs $100,998.00. The UGA-3000 produces incremental cash flows of $28,978.00 per year for 9 years and cost $124,802.00. The firms WACC is 8.44%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.
Answer format: Currency: Round to: 2 decimal places.
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th International Edition
1259094901, 9781259094903
