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URGENT 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
URGENT
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 $26,257.00 per year for 8 years and costs $99,708.00. The UGA- 3000 produces incremental cash flows of $28,432.00 per year for 9 years and cost $126,926.00. The firm's WACC is 8.19%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxesStep by Step Solution
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