Question: Carlyle Inc is considering two mutually exclusive projects . both require an initial investment of 15,000 at t= 0. project S has an expected life
Carlyle Inc is considering two mutually exclusive projects . both require an initial investment of 15,000 at t= 0. project S has an expected life of 2 years with after cash inflows of 7,000 and 12000 at the end of years 1 and 2, respectively. on addition, project S can be repeated at the end year 2 with m o changes on his cash flow. project L has an expected of 4 years with after tax inflows of 5,200 at the end .each project has a WAAC 9.00%. what is equivalent annual annuity of the most profitable project?
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