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Smith and Co. has to choose between two mutually exclusive projects. If it chooses project A,Smith and Co, will have the opportunity to make a

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Smith and Co. has to choose between two mutually exclusive projects. If it chooses project A,Smith and Co, will have the opportunity to make a simitar investment in three years, However, if it chooses project B, it will not have the opportunity to make a second investment. The following table lists the cash flows for these projects. If the firm uses the replacement choin (common fife) approach, what will be the difference between the net present value (NPV) of project A and project B, assurning that both projects have a weighted average cost of capital of 12% ? $12,609 $10,245 $13,397 \$11,033 315,761 $12,609 $10,245 $13,397 $11,033 315,761 Smith and Co, is considering a four-year project that has a weighted average cost of capital of 11% and a NPV of $75,682; Smith and Co. can replicate this project indefinitely. What is the equivalent annual annuity (EAA) for this project? $23,174 $21,955 $28,053 $24,394 $26,833

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