Assume you're comparing two projects. Project S will last 5 years, and Project L will last 8 years. You have computed the NPV of Project S to be $5 million and Project L to be $4 million. Determine which project to accept by computing the equal annual annuity (EAA) for each. The discount rate for both projects is 11%. (Express your answer in $millions rounded to one decimal place.)
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Project S EAA ($milion) = |
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Project L EAA ($milion) = |
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