16. Tesar Chemicals is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO believes the IRR is the best selection criterion, while the CFO advocates the NPV. WACC: 8.50% 2 34 Year CFS -$1,100 $550 $600 $100 $150 -$2,700 $650 $725 $800 $1,500 a. What is the Net Present Value of each project? Which project will the CFO prefer? (10) b. What is the Internal Rate of Return for each project? Which project will the CEO prefer? (5) c. How much better or worse off will the company be if the CEO chooses the project based on the best IRR? (5) CFL