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Project X has a cost of $1.4 million and annual cashflows of $310,000 over an estimated 8-year life. Project Y has a cost of $2.3

Project X has a cost of $1.4 million and annual cashflows of $310,000 over an estimated 8-year life. Project Y has a cost of $2.3 million and annual cashflows of $410,000 over an estimated 11-year life. The cost of capital is 8,7%.

A. What is the equivalent annual annuity for Project X?

B. What is the equivalent annual annuity for Project Y?

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