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erson PR Firm is considering two mutually exclusive projects with useful lives of 3 and 6 years. The after-tax cash flows for projects S and
erson PR Firm is considering two mutually exclusive projects with useful lives of 3 and 6 years. The after-tax cash flows for projects S and L are listed below. Year Cash Flow S Cash FlowL -$60,000 40,000 20,000 17,000 -$51,500 13,000 19,000 11,000 20,000 10,000 4 Assume a required return of 15% (5 points) a) What is the net present value for each project? b) What is the equivalent annual annuity for each project? c) Which project should Dickerson choose based on the EAA method
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