These 8 Myt & Co. is considering Prjects 5 and L whose cash flows are shown below. projects are mutualily exclusive, equally rsky, and not repeatable. if the decision is made by choosing the project with the higher RR how much value will be forgone? Note that under choosing projects on the basis of the IRR will not cause any value to be lost no conflict will exist the one with thehigher will also have the higher NPV, Le $1,025 $650 $450 $250 -$1,025 $100 $100 ssoo sso s700 a $5.47 b. $6.02 $6.62 d $7.29 e $7.82 19 Lasik Vision Inc. recently analysed the project whose cash flows are shown below. However before Lasik decided to accept or reject the project, the Federal Reserve took actions that changed interest rates and therefore the firm's WACC. The Fed's action did not affect the forecasted cash flows. By how much did the change in the WACC affect the project's forecasted NPV? Note that a project's projected NPV can be negative, in which case it should be rejected Old WACC: 8.00% New WACC: 11.25% Cash flows 1,000 $410 $410 $410 a. $59.03 b. -556.08 $53.27 d. -550.61 e. $48.08 20 Projects C and D are mutually exclusive and have normal cash flows. Project C has a higher NPV if the WACC is less than 12%, whereas Project D has a higher NPV if the WACC exceeds 12%. Which of the following statements is CORRECT? a. Project D probably has a higher IRR b. Project D is probably larger in scale than Project c. Project C probably has a faster payback d. Project C probably has a higher IRR e. The crossover rate between the two projects is below 12%