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 0 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% If the company's cost of capital is 5% and the decision is made by choosing the project with the higher IRR, how much value will be forgone? (Hint: Complete the NPV profile) Select one: O a $29.89 O $12.45 . $20.80 Od $ 1.79 O e. $ 4.01

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