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Galaxy Inc. is considering Projects and whose cash flows are shown below. These projects are mutually L 4 exclusive, equally risky, and not repeatable. If

Galaxy Inc. is considering Projects and whose cash flows are shown below. These projects are mutually L 4 exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the shorter payback, some value may be forgone. How much value will be lost in this instance? Note that under some conditions choosing projects on the basis of the shorter payback will not cause value to be lost. WACC: 10.00 % 1 2 4 CFS -$950 $500 $800 $0 $ 0 -$2,100 $400 $800 $800 $1,000 Year 3 CFL $63.57 \$53.31 \$43.16 $3.50

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