Question: Which project will you choose? Use the information to answer the following questions. A company is analyzing two mutually exclusive projects, S and L, whose

 Which project will you choose? Use the information to answer the

Which project will you choose? Use the information to answer the following questions. A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: Year o Year 1 Year 2 Year 3 Year 4 Cashflow for S -100 40 50 30 30 Cashflow for L -100 10 10 50 90 Assume the company can get an unlimited amount of capital at that cost. WACC NPV (S) NPV (L) 5% 10% 15% 20% 25% What is the internal rate of return (IRR) for Project S? Project L? Assume the WACC is 10%, which project will you choose based on IRR method? Select one: a. 19.93%, 17.83%, S b. 10.00%, 22.55%, L c. 20.12%, 18.91%, S X d. 19.93%, 15.21%, S e. 22.07%, 17.54%, L

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