Question: Confused with this question. Can someone help me out? A firm is considering Projects S and I, whose cash flows are shown below. These projects

Confused with this question. Can someone help me out?

A firm is considering Projects S and I, whose cash flows are shown below. These projects are mutually exclusivo, cqually risky, and not repeatable. The CEO wants to use the IRR criterion, while the cronivors the NPV method. You were hirod to advise the firm on the best procedure. If the wrong decision criterion is used, how much potential value would the firm lose? WACC 11.75% 0 1 2 3 4 CFS $1,025 $380 $380 $380 S380 CF $2,150 $765 5765 $765 $765 Select one: 3. 545.00 b. 562.70 0.545.51 d. 557.64 e. 550.56

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