Project S has cash flows of (600), 400, 300. Project L has cash flows of (900), 300, 400, 500. Both projects have a required return of 8%. The projects are mutually exclusive and repeatable.
What is the Equivalent Annual Annuity of Project S?
a) 9.73 b) 15.46 c) 21.17 d) 27.57
What is the 6-yr NPV of Project L using the Replacement Chain approach?
a) 73 b) 118 c) 174 d) 211