Question: A firm is considering Projects s and L, whose cash flows are shown below. These projects are mutually exc usive, equally risky and not repeatable.

A firm is considering Projects s and L, whose cash flows

A firm is considering Projects s and L, whose cash flows are shown below. These projects are mutually exc usive, equally risky and not repeatable. The CEO wants to use the IRR criterion, while the CFO favors 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 will the firm lose as a result of this decision? WACC 13.00% CFS$1,025$375$380 CFL $2,150 $385 750$759$768 $390 $777 (Required-5 points possible.)

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