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You have converted the PV of equipment A’s cashflows to an annuity of $9 over its...

  1. You have converted the PV of equipment A’s cashflows to an annuity of $9 over its life expectancy. The same analysis produces an annuity of $8 for equipment B over its life expectancy. If you run them forever, (A) Equipment A is better, (B) Equipment B is better, (C) need the discount rate to determine, (D) need to know their life expectancies.

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