What are the annualized capital costs of both projects


Project A has an initial capital outlay of $3 million. It will be converted into an equivalent 5 year annuity at a discount rate of 12% per year. Project B has an initial capital outlay of $6 million. It will be a ten year annuity at the same discount rate as Project A. What are the annualized capital costs of both projects?

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Microeconomics: What are the annualized capital costs of both projects
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