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Tesar Chemicals is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. WACC:

Tesar Chemicals is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. WACC: 7% Year 0 1 2 3 4 CFS -$100 $50 $40 $30 $10 CFL -$200 $30 $50 $60 $100 a.Find NPV, IRR and discounted payback period for Project S. b.Find NPV, IRR and discounted payback period for Project L. c.If Projects S and L are mutually exclusive, which project should be selected? Explain why you choose the project. d.If Projects S and L are independent, which project should be selected? Explain why you choose the project. e.Find crossover rate.

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