Carlyle Inc

Multiple Choice

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-tax cash inflows of $7,000 and $12,000 at the end of Years 1 and 2,respectively​.In addition,Project S can be repeated at the end of Year 2 with no changes in its cash flows.Project L has an expected life of 4 years.Each project has a WACC of 9%.What is the equivalent annual annuity of the most profitable project?

A) ​$569.67
B) ​$792.34
C) ​$865.31
D) ​$1,522.18
E) ​$1,846.54