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 $26,721.00 per year for 8 years and costs $102,710.00. The UGA-3000 produces incremental cash flows of $27,900.00 per year for 9 years and cost $123,085.00. The firm’s WACC is 7.63%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.

Submit

Answer format: Currency: Round to: 2 decimal places.

unanswered

not_submitted

Attempts Remaining: Infinity

#4

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 $26,771.00 per year for 8 years and costs $102,319.00. The UGA-3000 produces incremental cash flows of $29,346.00 per year for 9 years and cost $124,674.00. The firm’s WACC is 7.25%. What is the equivalent annual annuity of the UGA-3000? Assume that there are no taxes.

Submit

Answer format: Currency: Round to: 2 decimal places.

Answer 1