Question: Carlyle Inc. is considering a project. It equires an initial investment of $15,000 at t = has an expected life of 2 years with after-tax
Carlyle Inc. is considering a project. It equires an initial investment of $15,000 at t = has an expected life of 2 years with after-tax cash inflows of $7,100 and $13,300 at the end of Years 1 and 2, respectively. The firm has WACC of 9%. What is the equivelent anaul anuity of the project?
a.$2,708.11
b.$469.97
c.$1,246.97
d.$1,539.47
e.$460.57
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