Yonan Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and repeatable. Project S's equipment lasts one year; Project L's equipment lasts 4 years, with negative cash flow in the fourth year. Use replacement chain and calculate NPVs to choose the project. WACC: 10%.

0 1 2 3 4

CF-S -$1,000 2,000

CF-L -$200 1,000 1,250 1,500 -1,000