Transcribed image text: 5. Carlyle Inc. is considering two mutually exclusive projects Both require an initial investment of $14.800 at t= 0. Project S has an expected life of 2 years with after-tax cash inflows of $7,200 and $12.700 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 with after-tax cash inflows of 55,600 at the end of each of the next 4 years. Each project has a WACC of 9% What is the equivalent annual annuity of the most profitable project? a 1,418.24 b. 1.042 02