Question: 37. A firm Is considering Projects S and whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The

37. A firm Is considering Projects S and whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO wants to use the IRR criterion, while the CFO favor the NPV method, and you were hired to advise the firm on the best procedure. If the CEO's preferred criterion Is used, how much value with the firm lose as a result of this decision? WACC 13%. CFL-$2,150 1 $750 $750 2 $759 3 $768 4 $777 CFS -$1,025 1 $375 2 $380 3 $385 4 $390

a. $5.83 b. $6.14 c. $6.46 d. $6.79 e. $7.13

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