1. A firm is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO wants to use the IRR criterion, while the CFO favors the NPV method. You were hired to advise the firm on the best procedure. If the wrong decision criterion is used, how much potential value would the firm lose? warc 11.75% 2. A project has annual cash flows of $7,500 for the next 10 years (i.e. year 1 through year 10). The IRR of this project is 14.5% and the cost of capital is 9.5%. What is the project's NPV? a. $7831.87 b. $8525.75 c. $8721.68 d. $8836.28 e.\$8975.24