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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 $25,909.00 per year for 8 years and costs $102,649.00. The UGA-3000 produces incremental cash flows of $28,163.00 per year for 9 years and cost $125,136.00. The firms WACC is 8.15%. What is the equivalent annual annuity of the GSU-3300?
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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 incremental cash flows. The GSU-3300 produces incremental cash flows of $26,697.00 per year for 8 years and costs $103,885.00. The UGA-3000 produces incremental cash flows of $29,133.00 per year for 9 years and cost $123,906.00. The firms WACC is 8.63%. What is the equivalent annual annuity of the UGA-3000?
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Answer format: Currency: Round to: 2 decimal places.
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