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Can you calculate the equivalent annual annuity of Project B?... Assume the discount rate is 5%. Year 0 1 2 3 4 5 6
Can you calculate the equivalent annual annuity of Project B?... Assume the discount rate is 5%. Year 0 1 2 3 4 5 6 Project A Project B $(155,277) $(199,233) $17,625 $17,401 $50,207 $48,361 $25,190 $11,167 $68,414 $82,588 $76,616 ***Use three years (life of Project B) as the life of the EAA. Round your answer to the nearest two decimals if needed. Do not type the $ symbol. After calculating the Equivalent Annual Annuity... Type the equivalent- annual-annuity of the project you would choose (A or B)?..... Assume. the discount rate is 5%. Year 0 1 2 3 4 5 Project A $(105,361) $56,981 $79,568 $36,781 $45,331 $69,066 Project B $(192,434) $91,997 $80,453 ***Hint: Use five years for Project A and two years for Project B as the life of the EAA (Assumption: Projects are renewable indefinitely). Round your answer to the nearest two decimals if needed. Do not type the $ symbol.
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