Mike mulligan ceo of mulligan excavation inc needs to, Ask an Expert

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Mike? Mulligan, CEO of Mulligan Excavation? Inc, needs to replace Mary? Anne, his old? steam-driven shovel. Mike is looking at three used Caterpillar hydraulic excavators. Each alternative is a different model and each is a different? age, and so each has a different expected working life and productive capability. Mike has produced estimates? (in the table? below) of the purchase price of each excavator and the associated after-tax cash flows that he expects to earn.? Mike's cost of capital is 9%.

Calculate the equivalent annual annuity for Model A.

Based on your analysis Mick should choose:

Time Model A Model B Model C

1 -143 -109 -119

2 51 97 46

3 70 41 44

4 35 63

5 34

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92427440

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