PS33 #3

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 increases incremental cash flows. The GSU-3300 produces incremental cash flows of $24,411.00 per year for 8 years and costs $100,352.00. The UGA3000 produces incremental cash flows of $28,901.00 per year for 9 years and cost $124,028.00. The firm's WACC is 9.36%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes. Answer format: Currency: Round to: 2 decimal places