Question: help!! Question 8 6 pts A firm is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally
Question 8 6 pts A firm is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO wants to use the IRR criterion, while the CFO favors the NPV method. You were hired to advise the firm on the best procedure. Your advice: More money is better that a higher return Go with the project that produces more wealth. NPV over IRR. The initial Outlay is For Project Sis $1025. Cash flows for each of the four years is $380 ach year. The initial Outlay is For Project Lis $2,150. Cash flows for each of the four years is $765 each year. If the wrong decision criterion is used, how much potential value ($$$) would the firm lose? D.11.7WACC 6%e.aspx.jpg What is the NPV of Project S? (Select] What is the IRR of project,S? (Select) What is the NPV of Project L? (Select] What is the IRR of project, L? (Select] Which Project would you recommend? (Select) How much value will the company lose if the IRR criterion is used
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