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Help Allied Biscurt Co, has to choose between two mutually exclusive projects, If it chooses project A, Alied Biscuit Co. will have the opportunity to
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Allied Biscurt Co, has to choose between two mutually exclusive projects, If it chooses project A, Alied Biscuit Co. will have the opportunity to make a similar investment in three years. However, if it chooses project B, it will not have the opportunity to make a second investment. The following table lists the cash flows for these projects. If the firm uses the replacement chain (common life) approach, what will be the difference between the net. present value (NPV) of project A and project B, assuming that both projects have a weighted average cost of capital of 13% ? $13,934 536,596 $14,663 312,076 511,10% Ch 12-Assignment - Cash Flow Estimation and Risk Analysis $13,934$18,579$14,863$12,076$11,147 Alted Biscuit CO. is considering a three-year project that has a weighted average cost of capital of 10\% and a NPV of $45,681, Allied Biscult Co. can replicate this oroject indefinitely. What is the equivalent annual annuity (EAA) for this project? $19,287 $18,369 $15,614 $20,205 $16,532 Step by Step Solution
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