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

 

Genesis Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually 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? WACC 13.00% 0 1 2 4 CFS -$1,050 $500 $800 SO 50 CFL -$2,100 $400 $800 $800 $1,000

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