Question: QUESTION 10 1 points A firm is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky,

QUESTION 10 1 points A firm is considering Projects S and L, whose cash flows 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 firm on the best procedure. If the wrong decision criterion is used, how much potential value would the firm lose? Required return: 6.00% Year 0 1 3 Cash flows of Projects -$1,055 $400 $400 $400 $400 Cash flows of Project L -$2,050 $700 $700 $700 $700 $44.53 O $33104 O $375 57 O $527 None of the above Chek Save and Submit to and bitches All A

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