T FEIR Question 2 r. Year Silverman Co. 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 $0.00 value to be lost. NPV, how much value will be forgone? Note that under some conditions choosing projects on the basis of the MIRR will cause CFs CFL A) $32.12 8.75% 0 -$1,100 -$2,200 1 $375 $725 2 $375 $725 25 OF 25 QUESTIONS REMAINING Cost acct MGMT 1350 I 3 $375 4 Points $725 $375 $725

$0.00 value to be lost. $0.00 value to be lost