Question: Please show all detailed work. There are two mutually exclusive projects S and L. They are equally risky, and not repeatable and their cash flows

Please show all detailed work. There are two mutually exclusive projects S and L. They are equally risky, and not repeatable and their cash flows are shown below (in millions of dollars) Suppose WACC of a firm is 10%.

0 1 2 3 4
project S -25 5 10 15 20
project L -25 20 10 8 6

1) Calculate npvs abd irrs for project s and L.

2) based on the calucaltions above, which one is acceptable if projects are mutually exclusive?

3) what are traditional payback periods for both projects?

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