2 1. Projects SS and LL have the following cash flows: WACC =r= 10% 0 1 6 500 SS 7 LL -700 -700 2 300 300 3 100 600 100 If a 10% cost of capital is appropriate for both of them, what are their NPVs? NPV SS LL 16 What project or set of projects would be in your capital budget if SS and LL were (a) independent or (b) mutually exclusive? 23 What are the two projects' IRRs, and which one would the IRR method 24 select if the firm has a 10% cost of capital and the projects are 25 (a) independent or (b) mutually exclusive? IRR SS LL