Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE

17-Kosovski Company is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and are not repeatable. If the decision is made by choosing the project with the higher IRR, how much value will be forgone? Note that under some conditions choosing projects on the basis of the IRR will cause $0.00 value to be lost.

WACC:	9.50%
	0	1	2	3	4
CFS	-$1,050	$675	$650
CFL	-$1,050	$360	$360	$360	$360

A)$4.83

B)$3.95

C)$5.97

D)$0.00

18-A firm is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. 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?

WACC:	10.50%
	0	1	2	3	4
CFS	-$1,025	$380	$380	$380	$380
CFL	-$2,150	$765	$765	$765	$765

A)$82.31

B)$68.31

C)$72.43

D)$91.36