AAA Company is evaluating two projects L and S. Their projected cash flows are shown below. L and S are mutually exclusive. The WACC is 9%.

Year......................0...................1..................2..................3...................4

CF_t of L............-1,000..............550.............600................0.................220

CF_t of S............-2,600..............750.............700..............800..............1,400

1. Calculate the NPV for S and L.
2. Calculate the IRR for S and L.
3. Calculate the Discounted Payback for S and L.
4. Based on the evaluation in Part 1-3, which project(s) would you accept? Explain your answer.

(Show your work neatly to get partial/full credits. A correct answer with NO work shown is worth ZERO point, but an incorrect or partial answer with some work shown may be worth partial credits.)