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 Project S, but the CFO prefers Project L. How much value will the firm gain or lose if Project L is selected over Project S, i.e., what is the value of NPVL - NPVS? a. 951.15 b. 889.12 c. 1,033.86 d. 1,013.18 e. 940.81 13. Chrustuba Inc. is evaluating a new project that would cost $8.6 million at t= 0. There is a 50% chance that the project would be highly successful and generate annual after-tax cash flows of $6.4 million during Years 1, 2 and 3. However, there is a 50% chance that it would be less successful and would generate only $1 million for each of the 3 years. If the project is highly successful, it would open the door for another investment of $10 million at the end of Year 2, and this new investment could be sold for $20 million at the end of Year 3. Assuming a WACC of 11.0%, what is the project's expected NPV (in thousands) after taking into account this growth option? Do not round intermediate calculations. a. $3,696 b. $2,772 C. $4,619 d. $4,250 e. $2,956