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Please answer questions 1-4 there are no taxes. Attempts Remaining: Infinity Answer format: Currency, Aound to: 2 decimal places. A firm is considering replacing the
Please answer questions 1-4
there are no taxes. Attempts Remaining: Infinity Answer format: Currency, Aound to: 2 decimal places. A firm is considering replacing the existing industrial air conditioning urit. They will pick one of two unts. The first, the AC360, costs $26,794.00 to install, $5,041.00 to operate per year for 7 years at which time it wil be sold fer $6,097.00. The second, RayCool 8, costs $41,921,00 to instal, $2,052.00 to operate per year for 5 years at which time it will be sold for $9.070.00. The firm's cost of capital is 6.41%. What is the equivalont annux cost of the Raycools? Assume that there are no taues. Attempts Pemaining Infinity Answer format: Qumency: Alound to: 2 decimal places. 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 incraases incremental cash flowk. The GSU.3300 produces incremental cash fows of $24,123.00 per year for 8 years and costs $104,647,00. The UCA-3000 produces incremental cash flows of $27,112,00 per year for 9 years and cost $123,886.00. The firm's WACC is 7.15%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes. Attempts Remaining infoly Answer format: Cumency: Found to: 2 decimal places. A firm is must choose to buy the GSU-3300 or the UCA-3000. Both machines make the frmi production process more efficiert which in tum increases incremental cash fown. The GSU:3900 produces incremertal cash flows of $25,434,00 per year for \& years and costs $101,410.00. The UGA-3000 produces incremental cash flows of $29,686.00 per year tor 9 years and cost 5125,029.00. The frmb WACC is 721%. What is the equivalent arnual annuty of the UCA-3000? Attempts Remaining infinity Step by Step Solution
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