NRJ & Co$.$ is considering Projects S and L$,$ whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. Find the NPV$,$ IRR and Payback for each project at the three WACCs. Choose a project.

Year $01234$

CFS : $$1,025$ $$650$ $$450$ $$250$ $$50$

CFL : $$1,025$ $$100$ $$300$ $$500$ $$700$

a$.$ WACC $=5\%$

b$.$ WACC $=10\%$

c$.$ WACC $=15\%$

Evaluate both projects at the following three weighted average cost of capital:$($WACC$)$ of $5\%,10\%,$ and $15\%.$

$1.$ Calculate the Simple Payback. Use a discount rate of $10\%$ to calculate the

Discounted Payback for each project.

$2.$What is the MIRR of each project? Use $10\%$ as the rate for Compounding?

$3.$ Which project would you ultimately choose and why $($justify your answer$)?$