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if anyone can help with these last questions begore the assignment is do I would greatly appreciate it!! 12 A firm is considering replacing the
if anyone can help with these last questions begore the assignment is do I would greatly appreciate it!!
12 A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,318.00 to install, 5,081.00 to operate per year for 7 years at which time it will be sold for 57,136.00 The second, RayCool 8, costs 541,894.00 to install, 52,040.00 to operate per year for 5 years at which time it will be solo for $8,918.00. The firm's cost of capital is 570%. What is the equivalent annual cost of the RayCoolS? Assume that there are no taxes Submit Answer format: Currency Round to: 2 decimal places B A firm is must choose to buy the GSU-3300 or the UGA 3000. Both machines make the firm's production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $26,674 00 per year for 8 years and costs $104,926.00 The UGA-3000 produces incremental cash flows of S29 347.00 per year for 9 years and cost $125,786.00. The firm's WACC is 8.68% What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes Submit Answer format: Currency. Round to 2 decimal places Step by Step Solution
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