5. A firm is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive and equally risky. In deciding which project to select 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? Assume that the WACC is 6.75%. Time CFS CFL O -$1,025 $2,150 1 $380 $765 N $380 $765 3 $380 $765 4 $380 $765 a. $214.44 b. $186.47 c. $218.17 d. $182.74 e. $269,44