Question: Yonan Inc. in considering Projects Sand L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the

Yonan Inc. in considering Projects Sand L, whose cash flows are

Yonan Inc. in considering Projects Sand 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 shorter payback, some value may be forgone. How much value will be lost in this instance? Note that under nome conditions choosing projects on the basis of the shorter payback will not cause value to be lost. WACC 8.25% 0 1 2 3 4 -5700 $310 $430 $590 $540 $0 $540 50 5820 -$1.750 CFL a. 141.07 $5 OOOOO b. $380.00 53794 d. $276.74 c. $0.00

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