Exercise 9. A company is considering the purchase of a new plant; Plant A costs 30,000, last for 4 years and produce cash flow of 8,000 per year, Plant B cost 9,000, lasts for 3 years and produce annual cash flows of 4,000. Assuming a 5% required rate of return on both projects, compute their EAA equivalent annual annuity Initial CF Year 1 Year 2 Year 3 Year 4 Plant A Plant B -30,000 -9,000 8,000 4,000 8,000 4,000 8,000 4,000 8,000 +