What is the projects equivalent annual


A project requires an investment of $470,000 today and is expected to generate free cash flows of $215,000 at the end of year 1, $145,000 at the end of year 2, $110,000 at the end of year 3, and $180,000 at the end of year 4. If the company’s weighted average cost of capital is 9.3% per year. What is the project's equivalent annual annuity?

A) $18,159

B) $15,226

C) $20,431

D) $17,216

E) $12,277

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Financial Management: What is the projects equivalent annual
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