Question: ohman inc is considering project S and L whose cash flows are below. these projects are mutually exclusive and equally risky, and not repeatable. if

ohman inc is considering project S and L whose cash flows are below. these projects are mutually exclusive and equally risky, and not repeatable. if the decision is made by choosing the project with the shorter payback, some value may be forgone. How much value will be lost in this instance? not that under some conditions choosing projects on the basis of shorter payback will not cause value to be lost.

CFs year 0: -760 year1:400 year2:1100 year 3:$0 Year4: $0

CFL Year0:$-2300 Year1:$600 Year2:$1000 Year3:$1100 Year4:$1200

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