Question: a firm is considering projects s & L whose cash flows are shown below. these projects are mutually exclusive, equally risky, and not repeatable. the

a firm is considering projects s & L whose cash flows are shown below. these projects are mutually exclusive, equally risky, and not repeatable. the Cfo wants to use the IRR criterion, while the Cfo favors the Npv method. you were hired to advise the firm on the procedure. if the wrong decision is used, how much potential value would the firm lose? WACC : 6.00 % year. 0. 1. 2. 3. 4 cfs. -1,025. 380. 380. 380. 380 CFL. -2,150. 765. 765. 765. 765

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