Health Care is Us, Inc

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Health Care is Us, Inc. needs to decide between two projects with different lives. Project ‘A’ has a $15,000 initial cost, a useful life of 6 years, and a net present value of $2,550. What is the Equivalent Annual Annuity (EAA) value of Project ‘A’ using an 11% discount rate?

$8,019

$4,770

$354

$603