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NOTE I WANT THE SOLUTION OF ALL SUBPARTS PLEASE IN DETAILS. Project A has a cost of $15000, a 3-year life, and after-tax cash flows
NOTE I WANT THE SOLUTION OF ALL SUBPARTS PLEASE IN DETAILS.
Project A has a cost of $15000, a 3-year life, and after-tax cash flows of $10,000, $8,000 and $6,000 respectively
Project B has a cost of $15000, a 5-year life, and after-tax cash flows of $10,000, $5,000, $4,000, $3,000 and $2,000 respectively
Both projects have a WACC of 9%.
15. The NPV for project A is: *
A. $5,540.85
B. $5,555.85
C. $6,500.21
D. $9,000
E. None of the above
16. The NPV for project B is: *
A. $9,000
B. $4,896.58
C. $5,540.85
D. $0
E. None of the above
17. The Equivalent Annual Annuity (EAA) for project A is: *
A. $2,861.34
B. $2,961.34
C. $2,061.34
D. $2,188.94
E. None of the above
18. The Equivalent Annual Annuity (EAA) for project B is: *
A. $1,258.87
B. $0
C. $2,961.34
D. $3,200
E. None of the above
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