please answer completely and correctly all questions thanks 010000003af126-01200

Question

please answer completely and correctly all questions thanks

010000003af126-0120000 cte mayest-0006ack-m 1510028483776 0AAA051D Search apital Budgeting: Decision Criteria Due Thursday 1109 17 at 09:00 P raded Assignmen Attempts:Kep the flighest: 12 As Aa 17. Equivalent annual annuities Another method to deal with the unequal life problem of projects is the equivalent annual annuity ( this method the annual cash flows under the alternative investments are converted into a constant whose NPV is equivalent to the NPV of the comparative project's initial stream. EAA) method. In cash flow stream Consider the case of Cute Camel Lumber Company: Cute Camel Lumber Company is considering a three-year project that has a weighted average cost of capi and a net present value (NPV) of $45,681. Cute Camel Lumber Company can replicate this project indefinitely The equivalent annual annuity (EAA) for this project is do a good job of taking inflation into The EAA approach to evaluating projects with unequal lives account Grade It Now Continue without savi

Explanation / Answer

EAA can be calculated using PMT function on a calculator

N = 3, I/Y = 10%, PV = 45,681, FV = 0

=> Compute PMT = $18,369.01

Please share the options for the second question, without which it is difficult to predict the correct answer.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.