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Croose detween two mutualiy exclusive projects. If it chooses project A, Extensive Enterprise finc. will have the opportunity to make a similar investment in three

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Croose detween two mutualiy exclusive projects. If it chooses project A, Extensive Enterprise finc. will have the opportunity to make a similar investment in three years. However, if it chooses project B, it will not have the opportunity to make a second investment. The following table lists the cash flows for these projects. If the firm uses the replacement chain (common life) approach, what will be the difference between the net present value (NPV) of project A and project B, assuming that both projects have a weighted average cost of capital of 14% ? $11,293 $10,486 $16,133 $12,906 39,680 Extersive Enterprise Inc. is considering a four-year project that has a weighted average cost of capital of 13% and a NPV of 589,567 . Extensive Enterprise Inc. can replicate this project indefinitely. What is the equivalent annual annuity (EAA) for this project? $33,123 $28,606 $25,595 $30,112 $27,101 Croose detween two mutualiy exclusive projects. If it chooses project A, Extensive Enterprise finc. will have the opportunity to make a similar investment in three years. However, if it chooses project B, it will not have the opportunity to make a second investment. The following table lists the cash flows for these projects. If the firm uses the replacement chain (common life) approach, what will be the difference between the net present value (NPV) of project A and project B, assuming that both projects have a weighted average cost of capital of 14% ? $11,293 $10,486 $16,133 $12,906 39,680 Extersive Enterprise Inc. is considering a four-year project that has a weighted average cost of capital of 13% and a NPV of 589,567 . Extensive Enterprise Inc. can replicate this project indefinitely. What is the equivalent annual annuity (EAA) for this project? $33,123 $28,606 $25,595 $30,112 $27,101

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