A firm is considering Projects S and L, with the following cash flows: Project L: $2,150 in year 0, $765 in years 1, 2, 3, and 4 Project S: $1,025 in year 0, $380 in years 1, 2, 3, and 4 These projects are mutually exclusive. The projects are also equally risky with WACC of 6%. 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?

a. $188.68

b. $230.49

c.$198.61

d.$209.07

e. $219.52