Question: Having trouble with this question. Show work if possible Use the information to answer the following questions. A company is analyzing two mutually exclusive projects,

Having trouble with this question. Show work if possible Use the informationHaving trouble with this question. Show work if possible

Use the information to answer the following questions. A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: Year 0 Year 1 Year 2 Year 3 Year 4 Cashflow for S -100 40 50 30 30 Cashflow for L -150 10 10 50 200 Assume the company can get an unlimited amount of capital at that cost. WACC NPV (S) NPV (L) 5% 10% 15% 20% 25% If the company's cost of capital is 15% and the decision is made by choosing the project with the higher IRR, how much value will be forgone? (Hint: Complete the NPV profile) Select one: a. $12.45 b. $ 4.01 c. $29.89 O d. $20.80 X e. $ 0.00 Continued from previous question. Which of the following statements is correct? Select one: a. The crossover rate should be smaller than 10%. b. If the WACC is larger than the crossover rate, a conflict arises between the NPV and the IRR methods. c. The crossover rate should be between 15% and 20%. O d. If the WACC is smaller than the crossover rate, you will choose project S using the NPV method. x e. The crossover rate should be larger than 20%

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