Question: Problem 2 NPV & IRR: The cash flows for 2 mutually exclusive projects are: Project S: 0 1 3 500 500 Project L: 0 -1,000

Problem 2 NPV & IRR: The cash flows for 2 mutually exclusive projects are: Project S: 0 1 3 500 500 Project L: 0 -1,000 1 -2,000 668.76 2 668.76 2 500 3 668.76 4 5 668.76 668.76 If the firm's WACC is 10%, how much value is sacrificed if the firm selects the project with the higher IRR?

Problem 2 NPV \& IRR: The cash flows for 2 mutually exclusive projects are: 76 If the firm's WACC is 10%, how much value is sacrificed if the firm selects the project with the higher IRR

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