Carolina Company is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and are not repeatable.

WACC: 7.75%

Year 0 1 2 3 4

CFS $1,050 $675 $650

CFL $1,050 $360 $360 $360 $360

1. If the decision is made by choosing the project with the higher IRR, how much value will be forgone?
2. What is the underlying cause of ranking conflicts between NPV and IRR?

Please include all equations including NPV. I have gone through the question myself a few times and I think I am getting the wrong answer/using the wrong equation for NPV or perhaps somewhere else. Thank you.