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Question 20 5 pts Arrow Electronics is considering Projects S and L, which are mutually exclusive, equally risky, and not repeatable Project S has an

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Question 20 5 pts Arrow Electronics is considering Projects S and L, which are mutually exclusive, equally risky, and not repeatable Project S has an initial cost of $1 million and cash inflows of $370,000 for 4 years, while Project L has an initial cost of $2 million and cash inflows of $720,000 for 4 years. The CEO wants to use the IRR criterion, while the CFO favors the NPV method, using a WACC of 7.42%. You were hired to advise the firm on the best procedure. If the wrong decision criterion is used, how much potential value would the form lose? That is what is thI difference between the NPVs for these two projects? Your answer should be between 112000 and 202000, rounded to even dollars (although decimal places are okay), with no special characters. 1 W llo La MacBook Pro Search or type URL 2 6 7 8 C 9

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