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A rm is considering Projects S and L, whose cash ows 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 rm on the best procedure. If the wrong decision criterion is used, how much potential value would the rm lose? WACC: 6.50% 0 1 2 3 4 CFS $1,025 $380 $380 $380 $580 CFL $2,150 $765 $765 $765 $965 '1' T I lAriaI :itauzpt) :7 '1' - EE . E HE] c? a\": l3 3: 3 Path: 0 Words:0 A