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 $26,276.00 per year for 8 years and costs $101,568.00. The UGA-3000 produces incremental cash flows of $29,257.00 per year for 9 years and cost $124,088.00. The firm’s WACC is 9.78%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes. Answer format: Currency: Round to: 2 decimal places.
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 $26,276.00 per year for 8 years and costs $101,568.00. The UGA-3000 produces incremental cash flows of $29,257.00 per year for 9 years and cost $124,088.00. The firm’s WACC is 9.78%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes. Answer format: Currency: Round to: 2 decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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 $26,276.00 per year for 8 years and costs $101,568.00. The UGA-3000 produces incremental cash flows of $29,257.00 per year for 9 years and cost $124,088.00. The firm’s WACC is 9.78%. What is the equivalent annual
Answer format: Currency: Round to: 2 decimal places.
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