Nast 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 higher MIRR rather than the one with the higher NPV, how much value will be forgone? Note that under some conditions choosing projects on the basis of the MIRR will cause $0.00 value to be lost.

WACC:	10.75%
	0	1	2	3	4
CFS	-$1,100	$375	$375	$375	$375
CFL	-$2,200	$725	$725	$725	$725

a. $7.51

b. $8.32

c. $0.00

d. $199.41

e. $109.03

Nagel Equipment has a beta of 0.76 and an expected dividend growth rate of 3.70% per year. The T-bill rate is 4.00%, and the T-bond rate is 4.30%. The annual return on the stock market during the past 4 years was 10.25%. Investors expect the average annual future return on the market to be 12.80%. Using the SML, what is the firm's required rate of return? Do not round your intermediate calculations.

a. 14.46%

b. 10.76%

c. 9.73%

d. 10.69%

e. 8.82%