Question: 22. Porter & Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not

22. Porter & Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher IRR, how much shareholder wealth will be foregone? WACC = 10% Year: CFs: CF 0 -$1,025 -$1,025 $650 $100 2 $450 $300 3 $250 $500 4 $ 50 $700 a. -$6.93 b. $2.26 c. $0.00 d. $3.31 e $7.82

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