Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the EAA for Project A? Year Project A Project B -300,000 -300,000 150,000 70,000 150,000 70,000 3 80,000 120,000 4 80,000 120,000 120,000 60,000 O 19,086 78,468 O 61,292 O 69,055 O 20,179

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
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Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 14P
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Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the
EAA for Project A?
Year
Project A
Project B
-300,000
-300,000
150,000
70,000
150,000
70,000
3
80,000
120,000
4
80,000
120,000
120,000
60,000
O 19,086
78,468
O 61,292
O 69,055
O 20,179
Transcribed Image Text:Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the EAA for Project A? Year Project A Project B -300,000 -300,000 150,000 70,000 150,000 70,000 3 80,000 120,000 4 80,000 120,000 120,000 60,000 O 19,086 78,468 O 61,292 O 69,055 O 20,179
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