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Globex Carp, has to thodse between two mutually exdusive projects. If it chooses project A. Globex Corp. will have the opportunty to make a similar

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Globex Carp, has to thodse between two mutually exdusive projects. If it chooses project A. Globex Corp. will have the opportunty to make a similar investrivent in three years. However, if it chooses project B, if will not have the opportunity to makn a second investrment. The following table lists the mshi flows for these projects. If the firm weses the replacement dhain (common life) approach, what will be the difference between the net present value (NMYn of project A and project D., assurning that both projects have a weighted arerage cost of capital of 10% ? 52,900 18.7815 \$7,057. 512.928 511,753 Clobex Comp, as corsidering a three year projest that has a welghted avernge cost of cospital of 1146 and a NPV of 522,870 , Globex Corp. can replicate. thas propect indefintely, whue is the equivalent annud annuty (EAA) for this project? 57.955 59.187 59,349 111,699 510.76

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