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What is the equivalent annual annuity of the GSU

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Question - 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 $24,785.00 per year for 8 years and costs $103,736.00. The UGA-3000 produces incremental cash flows of $27, 143.00 per year for 9 years and cost $124,712.00. The firm's WACC is 9.93%. What is the equivalent annual annuity of the GSU-3300?

Reference no: EM133056697

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