A firm is considering Projects S and L$,$ whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The cash flows are presented below:

WACC:

$6\mathrm{.}75\%$

$0$

$1$

$2$

$3$

$4$

CFS

$-$$$1,025$

$$380$

$$380$

$$380$

$$380$

CFL

$-$$$2,150$

$$765$

$$765$

$$765$

$$765$

Calculate NPV for both projects.

Calculate IRR for both projects.

If these projects are mutually exclusive projects, which investment should you invest and why?

A firm is considering Projects S and L$,$ whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The cash flows are presented below:

WACC:

$6\mathrm{.}75\%$

$0$

$1$

$2$

$3$

$4$

CFS

$-$$$1,025$

$$380$

$$380$

$$380$

$$380$

CFL

$-$$$2,150$

$$765$

$$765$

$$765$

$$765$

Calculate NPV for both projects.

Calculate IRR for both projects.

If these projects are mutually exclusive projects, which investment should you invest and why?