.A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows:
Time Cash Flow X Cash Flow Y
0 -$90,000 -$75,000
1 35,000 30,000
2 60,000 30,000
3 70,000 30,000
4 - 30,000
5 - 10,000
Projects X and Y are equally risky and may be repeated indefinitely. If the firm’s WACC is 6%, what is the EAA of the project that adds the most value to the firm? Do not round intermediate calculations. Round your answer to the nearest dollar.
A.) Choose Project X , whose EAA = $