Question: Carlyle Inc. is considering two mutually exclusive projects. Both require an initial investment of $14.200 at t-o. Project Shas an expected life of a years
Carlyle Inc. is considering two mutually exclusive projects. Both require an initial investment of $14.200 at t-o. Project Shas an expected life of a years with after-tax cash inflows of $7.400 and $13.600 at the end of Years 1 and 2, respectively. In addition, Project S can be repeated at the end of Year 2 with no changes in its cash flows. Project I, has an expected life of 4 years with after tam cash inflows 86,000 at the end of each of the next 4 years. Each project has a WACC of 95%. What is the equivalent anual annuity of the most profitable project? De not round your intermediate calculations. O a.13.227.23 O $2,560.77 Oc1229425 O451.978.81 O$1.616.90
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