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Platinum, Inc. is considering two mutually exclusive projects, X and Y. Project X costs $95,000 today...


Platinum, Inc. is considering two mutually exclusive projects, X and Y. Project X costs $95,000 today and is expected to generate $65,000 in year one and $75,000 in year two. Project Y costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. The firm's investors require a rate of return of 15% and the weighted average cost of capital is 12%. What is the equivalent annual annuity for Project Y needed to compare the two projects?

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