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Calculate the eaa for each investment

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Renewable Energy Inc. is considering whether to invest in a solar park or a wind farm. Setting up the solar park will cost $20,000,000 and will generate $7,500,000 per year for 5 years. The wind farm will cost $35,000,000 to set up and will generate $8,000,000 per year for 10 years.

Question 1: Calculate the EAA for each investment, assuming that the company's required rate of return is 10% p.a.

Reference no: EM132513266

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