Example 1: Project "S" & Project "L" with WACC= 1 = 10% In this example, accept Project "L" if mutually exclusive (higher NPV), and accept both if independent NPV > 0. Year S L 5555 O cost: - 1,000 1 500 -1,000 100 CF 2 400 300 CF 3 300 400 CF 4 100 675 CPT NPV CPT IRR