Corporate Finance Assignment/ Professional Essay Writers
Faleye Consulting is deciding which of two computer systems to purchase. It can purchase state-of-the-art equipment (System A) for $23,000, which will generate cash flows of $10,000 at the end of each of the next 6 years. Alternatively, the company can spend $13,000 for equipment that can be used for 3 years and will generate cash flows of $10,000 at the end of each year (System B). If the company’s WACC is 10% and both “projects” can be repeated indefinitely, which system should be chosen, and what is its EAA? Do not round intermediate calculations. Round your answer to the nearest cent.
Choose Project -Select- v , whose EAA = $. Get Finance Help Today