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with written explanation (not computer program) A firm is deciding which of two computer systems to purchase. It can purchase state-of-the-art equipment (System A) for

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with written explanation (not computer program)
A firm is deciding which of two computer systems to purchase. It can purchase state-of-the-art equipment (System A) for $30,000, which will generate cash flows of $6,000 at the and of each of the next 8 years. Alternatively, the company can spend $10,000 for equipment that can be used for 3 years and will generate cash flows of $6,000 at the end of each year (System B). If the company's WACC is 8% and both projects can be repeated indefinitely, what is each system's EAA and which system should be chosen?(2 points)

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