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

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Noe Driling Inc. is considering Projects S and L whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO belienes the IRR is the best selection criterion, while the CrO advocates the MIRR. If the decision is made by choosing the project with the higher IRR rather than the one with the higher MiRR, how much, if any, value will be forgone, Le, what's the NPV of the chosen project versus the maximum posible NPV? Note that (i) "true value" is mearured by NPV, and (2) under some conditions the choice of IRR vs. MIRR will have no effect on the value lost. b. 5414.56 c 5207.19 d. 1000 e. 1249.13

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