9) The second capital budgeting decision which Sharpe and you were asked to analyze involves choosing between two mutually exclusive projects, S and L, whose cash ow are set forth below: _E-- " $400 one $400 one 240 000 n 240 um __ _ Both of these projects are in Robert Monotoya's main line of business, table wine, and the investment, which is chosen, is expected to be repeated indenitely into the future. Also, each project is of average risl-t, hence each is assigned the It} percent corporate cost of capital. a) What is each project's singlecycle NPV? Now apply the replacement chain approach and then repeat the analysis using the equivalent annual annuity approach. 1Which project should be chosen, S orL? Why? b) Now assume that the cost to replicate Project S in 2 years is estimated to be $420,009 because of inationary pressures. Similar investment cost increases will occur JFor both projects in Year 4 and beyond. How would this affect the analysis? Which project should be chosen under this assumption