Question: UF Company is considering Projects S and L , whose cash flows are shown below. These projects are mutually exclusive, equally risky, and are not
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.
WACC:
Year
CFS $ $ $
CFL $ $ $ $ $
If the decision is made by choosing the project with the higher IRR, how much value will be forgone?
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