Years: Cash flows( Short) Cash flows (long)

0 -1500 -2600

1 +950 +850

2 +950 +850

3 +950 +850

4 +850

5 +850

6 +850

Determine the EAA of each project using the next slide…

FOR THE Equivalent Annual Annuity ASSIGNMENT the cost of capital to be used is 8%.