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What is the Equivalent Annual Annuity (EAA) of a project that has an initial outlay of $2,500 followed by cash inflows of $1,000, $3,000 and
- What is the Equivalent Annual Annuity (EAA) of a project that has an initial outlay of $2,500 followed by cash inflows of $1,000, $3,000 and $5,000 in years 1, 2 & 3 respectively? Assume a cost of capital of 11%. (Round to nearest $)
| a. | $1,838 | |
| b. | $1,256 | |
| c. | $1,591 | |
| d. | $2,141 |
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Personal Finance
Authors: Jeff Madura
3rd Edition
0321357973, 978-0321357977
