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1. Pettway Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable.

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1. Pettway Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. a. Calculate the IRR of each project. (Do not need to show your work) (0.5 point) b. If the decision is made by choosing the project with the higher IRR, how much value will be foregone? 0.5 point) WACC,-12% Year CFs: CFL: 0 $1,025 S375 S380 S385 $390 2,153 S750 S759 S768 S777 4

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