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Porter & Co. isconsideringProjectsSandL, whosecashflowsareshown below.Theseprojectsare mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher

Porter & Co. isconsideringProjectsSandL, whosecashflowsareshown below.Theseprojectsare mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher IRR, how much shareholder wealth will be foregone?

WACC= 10% Year: o 2 34

-$1,025 $650 $450 $250 $ 50 -$1,025 $100 $300 $500 $700

a. -$6.93

b. -$2.26

c. $0.00

d. $3.31

e. $7.82

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