What is the project equivalent annual annuity

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Reference no: EM131609589

A project requires an investment of $1,200 today and it is expected to generate free cash flows of $400 at the end of year 1, $1500 at the end of year 2, and $700 at the end of year 3. If the company’s weighted average cost of capital is 10.4% per year, what is the project’s equivalent annual annuity?

Reference no: EM131609589

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