Question: 12. Atlas Corp. is considering two mutually exclusive projects. Both require an initial investment of $9,000 at t= 0 Project S has an expected life

12. Atlas Corp. is considering two mutually exclusive projects. Both require an initial investment of $9,000 at t= 0 Project S has an expected life of 2 years with after-tax cash inflows of $6,100 and $7,800 at the end of Years 1 and 2. respectively Project L has an expected life of 4 years with after-tax cash inflows of $4,893 at the end of each of the next 4 years. Each project has a WACC of 9.25% and Project S can be repeated with no changes in its cash flows. The controller prefers Projects, but the CFO prefers Project L. How much value will the firm gain or lose if Project L is selected over Project Sie, what is the value of NPVL - NPVS? 2951.15 b. 889 12

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