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Business, 16.12.2019 17:31 ghernadez

Wilson co. is considering two mutually exclusive projects. both require an initial investment of $10,000 at t = 0. project x has an expected life of 2 years with after-tax cash inflows of $6,000 and $8,500 at the end of years 1 and 2, respectively. project y has an expected life of 4 years with after-tax cash inflows of $4,600 at the end of each of the next 4 years. each project has a wacc of 11%. what is the equivalent annual annuity of the most profitable project?

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