Consider Projects S and L, C flows are below. These are mutually exclusive, equal risk, aren't repeatable.

WACC: 7.75%

Year 0 1 2 3 4

CFS $2,000 $1,500 $1,200

CFL $2,000 $800 $800 $800 $800

Answer the following questions:

1. Calculate The NPV, IRR, and MIRR for Project S and L. (Show Excel functions below)

2. If the decision is made to choose the project with a higher IRR, how much in value will be lost?

3. What is the cause of conflicts between NPV and IRR?