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Project A requires an upfront payment of $[500*(8+4+3)]M and yearly payments of $[10*(4+1+3)]M for [9+4+1] years. Project B requires an upfront payment of $[600*(8+4+3)]M and
Project A requires an upfront payment of $[500*(8+4+3)]M and yearly payments of $[10*(4+1+3)]M for [9+4+1] years. Project B requires an upfront payment of $[600*(8+4+3)]M and yearly payments of $[15*(4+1+3)]M for [6+8+4] years. Your cost of capital is [1+6] %. Which project should you take? a) What is the EEA for Project A. b) What is the EEA for Project B. c) Which project should you select: Project A, or Project B. NOTE: Provide your answers in Millions. E.G. for 100M you must enter 100.0000, for 20M you must enter 20.0000, etc.
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