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Lithium Inc, is considering two mutually exclusive projects, A and B. Project A costs 95,000 and is expected to generate 65,000 in year one and
Lithium Inc, is considering two mutually exclusive projects, A and B. Project A costs 95,000 and is expected to generate 65,000 in year one and 75,000 in year two. Project B costs 120,000 and is expected to generate 64,000 in year one, 67,000 in year two, 56,000 in year three, and 45,000 in year four. Lithium, Inc.'s required rate of return for these projects is 10%. The equivalent annual annuity amount for project A is: 15,024, 18,532, 13,357, or 12989
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