The Dickerson PR Firm is considering two mutually exclusive projects with useful lives of 3 and 6 years.The after-tax cash flows for projects S and L are listed below. 
Calculate the equivalent annual annuity for each project assuming a required return of 15%.What decision should be made?
Definitions:
Zero-Coupon Bonds
Debt securities that are issued at a discount and redeemed at face value but do not pay interest during their lifetime.
Immunize
A strategy in finance to shield a portfolio from interest rate movements by aligning the duration of assets and liabilities, thus stabilizing its overall value.
Interest Rate Risk
The potential for investment losses caused by fluctuations in interest rates, affecting debt securities inversely with their prices.
Treasury Bonds
Long-term government securities issued by the U.S. Department of the Treasury with a maturity period typically ranging from 20 to 30 years.
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