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how do I solve? Gobo-Dharma Ca. has to choose between two mutually exclusive projects. If it chooses project A, Globo-Dharma Co. Will have the opportunity
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Gobo-Dharma Ca. has to choose between two mutually exclusive projects. If it chooses project A, Globo-Dharma Co. Will have the opportunity to inake a slmilar investment in thiee vears. However, If it chooses project 8 , it will not have tha opportunity to make a second invegtment. The following table llsts the cade flaws tar these nrojects. If the firm uses the replacement chaln (common life) approach, what will he the difference between the net preseat value (VPV) of project A and project B, assuming that both projects have a weighted arverage cosit of capital of 125 . ? an replicate this project indefinitsly. What is the equivalent annual annuity (EAA) for this profect? $22.043 $2..04)$20.206 $9,632 312,542 58,989 $10,274 $11,558 Globo-Dharma Co, is considering a three-year project that has a weighted werape cost of capital of 105 and a kpV of $45,681. Globo-Dharma Co. can replicate this project indefinitehy. What is tho equivalent anaual annuity (EAA) for this project? $22,043 $20,206 518.369 $17.451 519,207 Step by Step Solution
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