Question: 11) (10 pts) Projects S and L, whose cash flows are shown below, are mutually exclusive, equally risky, and not repeatable. Hooper Inc. is considering
11) (10 pts) Projects S and L, whose cash flows are shown below, are mutually exclusive, equally risky, and not repeatable. Hooper Inc. is considering which of these two projects to undertake. Calculate the NPV and IRR for each project and explain which project should be undertaken based on your calculations. WACC: 10.25% Year 0 2 3 CFS -$2,050 $750 $760 $770 $780 CFL -$4,300 $1,500 $1,518 $1,536 $1,554
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