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solve this on a4 paper You are deciding to choose between two mutually exclusive projects. a. option1: project X will cost $6,000 to install and
solve this on a4 paper
You are deciding to choose between two mutually exclusive projects. a. option1: project X will cost $6,000 to install and $3000 a to run year and will last for three years. b. option 2: project Y will cost $7,000 to install and $2700 a to run year and will last for four years. Let the WACC = 0.06 Estimate the NPV of project X. Estimate the Equivalent annuity cost of project X. Estimate the NPV of project Y. Estimate the Equivalent annuity cost of project Y. Which option would you choose option 1 or 22Step by Step Solution
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