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Auburn Hills, Inc. is considering to buy one power plant. Auburn Hills uses WACC = 11.0% for valuing the proposals. Plant Milford: has expected life

Auburn Hills, Inc. is considering to buy one power plant. Auburn Hills uses WACC = 11.0% for valuing the proposals. Plant Milford: has expected life of 10years costs $21 million, and annual cash flow of $3.9 million. 5. What is EAA of Milford? Plant Waterford: has expected life of 5years, costs $10 million, and annual cash flow of $3.0 million. 6. What is EAA of Waterford? 7. Which one should Auburn Hills choose (Plant Waterford or Plant Auburn Hills

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