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eBook A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows: Time After-tax Cash Flow X After-tax Cash

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A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows:

Time After-tax Cash Flow X After-tax Cash Flow Y
0 -$85,000 -$80,000
1 35,000 30,000
2 55,000 30,000
3 60,000 30,000
4 - 30,000
5 - 10,000

Projects X and Y are equally risky and may be repeated indefinitely. If the firms WACC is 9%, what is the EAA of the project that adds the most value to the firm? Do not round intermediate calculations. Round your answer to the nearest dollar.

Choose Project -Select-XYItem 1 , whose EAA = $

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