Carlyle Inc

question 23

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

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Definitions:

Protein

Essential nutrients for the human body, composed of amino acids, that support various bodily functions including muscle repair and enzyme production.

Cerebrovascular Disease

A group of conditions that affect the blood vessels and blood supply to the brain, leading to potential brain damage and neurological deficits.

Blood Supply

The provision of blood to different parts of the body, facilitated by the cardiovascular system.

Tissue Damage

Physical harm to body tissues that can result from disease, trauma, or surgical procedures, often requiring medical intervention for healing and recovery.