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Twenty-7 Inc., is deciding which of two computer systems to purchase. It can purchase system A for $20,000, which will last 4 years. Alternatively the
Twenty-7 Inc., is deciding which of two computer systems to purchase. It can purchase system A for $20,000, which will last 4 years. Alternatively the company can spend $30,000 for system B which will last 6 years. If the company's WACC is 10%, calculate EAA for both investments. Which system should be chosen? EAA for A is $6,309.42, EAA for B is $6,888.22. A is better EAA for A is $7,395.66, EAA for B is $7,193.84. B is better EAA for A is $6,309.42, EAA for B is $6,888.22. B is better EAA for A is $7,395.66, EAA for B is $7,193.84. A is better
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