Question
Calculate the EAA for the given projects. Project NPV Life (years) Discount Rate K $200,000 5 10% L $300,000 7 12% What is the EAA
Calculate the EAA for the given projects.
Project | NPV | Life (years) | Discount Rate |
K | $200,000 | 5 | 10% |
L | $300,000 | 7 | 12% |
What is the EAA for Project K?
What is the EAA for Project L?
Requirement: Calculate the EAA for Project K and Project L under different conditions.
What is the EAA for Project K if the life of the project is extended to 6 years?
What is the EAA for Project L if the discount rate is reduced to 10%?
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Survey of Accounting
Authors: Carl S. Warren
8th edition
1305961889, 978-1337517386, 1337517380, 978-1305961883
