UF Company is considering Projects S and L$,$ whose cash flows are shown below. These projects are mutually exclusive, equally risky, and are not repeatable.

$2)$ Calculate IRRof projects S and L$,$ IRRS & IRRL $.$

IRRS IRRL

Years Cash Flows Years Cash Flows

$0-10500-1050$

$17001370$

$26252370$

$3360$

IRR $17\mathrm{.}38\%4360$

IRR $14\mathrm{.}72\%$

$3)$ If the decision is made by choosing the project with the higher IRR, how much value will be forgone?