Question: Answer the following questions. A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: Year 0 -200 -200

 Answer the following questions. A company is analyzing two mutually exclusive

Answer the following questions. A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: Year 0 -200 -200 Year 1 150 Year 2 100 Cashflow for S Cashflow for L Year 3 10 100 Year 4 10 250 10 10 Assume the company can get an unlimited amount of capital at that cost. WACC NPV (S) NPV (L) 5% 10% 15% 20% 25% What is the internal rate of return (IRR) for Project S? Project L? If the company's cost of capital is 5% which project will you choose based on IRR? Select one: a. 22.07%, 18.91%, S O b. 10.00%, 22.55%, L O c. 22.07%, 17.54%, L d. 19.93%, 15.67%, L e. 20.12%, 18.91%, S

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