Equivalent annual annuity of the most profitable project

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Reference no: EM131025580

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?

Reference no: EM131025580

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Equivalent annual annuity of the most profitable project : 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. Project ..

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