Question: Sexton Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive. If the decision is made by

Sexton Inc. is considering Projects S and L, whose cash flows

Sexton Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive. If the decision is made by choosing the project with the higher IRR, how much value will be forgone? WACC 14.00% 0 1 2 3 4 S760 $780 CFSI CFL -$2,050 -$4,300 $750 $1,500 $770 $1,536 $1.518 $1.554 $33 $34 $35 $40 O $0

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