Question: please show work! There are two mutually exclusive projects S and L. They are equally risky, and not repeatable and their cash flows are shown
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% 3 1 4 -$25 $15 $5 $20 $10 $20 Project S Project L -$25 s10 $8 $6 1) Calculate NPVS and IRRS for Project S and L. 2) Based on the calculation above, which one(s) is(are) acceptable if projects are mutually exclusive? 3) What are the traditional payback periods for both projects
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