Your company is considering two mutually exclusive projects, S and L, your firms required rate of return is 10%.

Project cashflows for project S are estimates to be: (-$100,000), $59,000,$ 59,000 in years 0,1, and 2, respectively.

Project cashflows for project S are estimates to be: (-$100,000),$ 33,500, $33,500, $33,500, $33,500, in years 0,1,2,3, and 4, respectively.

1. What is the NPV of project S? What is the NPV of project L?
2. Which project should you choose and why? Use the replacement chain approach and show all calculations in detail
3. What if you chose to use the Equivalent Annual Annuity approach instead? Show how you would do that with all calculations.