A company is considering the purchase of a new battery; type A costs 56,000, last for 3 years and produce cash flow of 1

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answerhappygod
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A company is considering the purchase of a new battery; type A costs 56,000, last for 3 years and produce cash flow of 1

Post by answerhappygod »

A company is considering the purchase of a new battery; type A
costs 56,000, last for 3 years and produce cash flow of 15,000 per
year, and


Type B
cost 69,000, lasts for 3 years and produce annual cash flows of
25,000.


Assuming
a 5% required rate of return on both projects, compute their EAA
equivalent annual annuity
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