Problem 12.05 – Faleye Consulting (Equivalent Annual Annuity)

Fundamentals of Financial Management, Concise

Brigham and Houston

11th Edition

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Difficulty – Medium

Given the cost, years, and after-tax cash flows for each system, and WACC... determine which system should be chosen assuming that both projects cant be repeated indefinitely based on the equivalent annual annuity (EAA) method.

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