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

1. Calculate NPV's of projects S and L, NPVs and NPVL

2. Calculate IRR of projects, IRRs and IRRL

3. If the decision is made by choosing the project with the higher IRR, how much value will be forgone?

4. Find crossover rate.

WACC:	7.75%
Year	0	1	2	3	4
CFS	($1,050)	$700	$625
CFL	($1,050)	$370	$370	$360	$360
NPVS=
NPVL=
IRRS =
IRRL =