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Years: Cash flows ( Short) Cash flows (long) 0 -1500 -2600 1 +950 +850 +950 +850 +950 +850 +850 +850
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Years: Cash flows( Short) Cash flows (long) • 0 -1500 -2600 • 1 +950 +850 • +950 +850 • +950 +850 • +850 • +850 • +850 Determine the EAA of each project using the next slide… FOR THEEquivalent Annual Annuity ASSIGNMENT the cost of capital to be used is 8%.
E.A.A.= E.A.A.=