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Q12. Faleye Consulting is deciding which of two computer systems to purchase. It can purchase cash flows of $6,000 at the end of each of

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Q12. Faleye Consulting is deciding which of two computer systems to purchase. It can purchase cash flows of $6,000 at the end of each of the next 6 years. Alternatively, the company can purchase state-of-the-art equipment (System A) for an after-tax cost of $21,000, which will generate after-tax equipment with an after-tax cost of S11.000 that can be used for 3 years and will generate after-tax cash flows of $6.000 at the end of each year (System B). If the company's WACC is 10% and both "projects can be repeated indefinitely, which system should be chosen, and what is its EAA? a. Project B, whose EAA - $1,586.74 b. Project A, whose EAA - $1,178.24 c. Project B, whose EAA - $1,576.74 d. Project A, whose EAA = $1,186.74

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