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Faleye Consulting is deciding which of two computer systems to purchase. It can purchase state-of-the-art equipment (5ystem A) for an after-tax cost of $20,000, which
Faleye Consulting is deciding which of two computer systems to purchase. It can purchase state-of-the-art equipment (5ystem A) for an after-tax cost of $20,000, which will generate after-tax cash flows of $6,000 at the end of each of the next 6 years. Aiternatively, the company can purchase equipment with an after-tax cost of $11,000 that can be used for 3 years and will generate after-tax cash flows of $6,000 at the end of each year (\$ystem B). If the company's WACC is 10% and both "projects" can be repeated indefinitely, which system should be chosen, and what is its EAA? Do not round intermediate caliculations: Round your answer to the nearest cent. Choose Project , whose EAA = s
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