Question: 5 A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below. Project S: -1,100 (Year 0), 1000 (Year
- A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below. Project S: -1,100 (Year 0), 1000 (Year 1), 350 (Year 2), 50 (Year 3). Project L: -1,100 (Year 0), 0 (Year 1), 300 (Year 2), 1,500 (Year 3). The companys cost of capital is 12 percent. Project Ss NPV is . Project Ls NPV is . (You may want to keep your calculation results for another related question.)
A. $135.91; $206.83 B. $107.46; $206.83 C. $107.46; $274.91 D. $300.00; $700.00 E. $135.91; $274.91
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