Question: Tesur Chemicals is considering Projects $ and L , whese canh flows are shown below, These projects are multually exclusive. equally righy, and not repeatable.

Tesur Chemicals is considering Projects $ and L , whese canh flows are shown below, These projects are multually exclusive. equally righy, and not repeatable. The CEO believes the IRR is the best selection erterion, while the CFO advocates the NPV, If the decinion is made by cheosing the project with the higher IRR ather than the one with the higher NPV, how much, 8 any. volue will be forgone, Le, whars the chasen NPV werus the madmum pousible NPVP Note that (1) "Yroe value" is masured by NPN, and (2) under some conditions the chaice of IRR vi. NPV sall flove no effect on the value gained or lost.
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Tesur Chemicals is considering Projects $ and L ,

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