Question: Farmer Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and repeatable. Given the

Farmer Co. is considering Projects S and L, whose cash flows

Farmer Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and repeatable. Given the two projects are of different length, one suggestion is to use the replacement chain approach to compare them. If this approach is used, which project will you choose? Show the calculations to justify your decision

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