Use the following information to answer questions 6 and 7 Carolina Company is considering and exclusive, equally risky, and are not repeatable 8 projects S and L, whose cash flows are shown below. These projects are mutually Year Project S $1,050 $675 $650 $1,050 $360 $360 $360 $360 2 4 6. Assuming a WAC a. Choose project S, adds $136.31 to firm value b. Choose project L, adds $149.03 to firm value c. Choose project S, adds $253.72 to firm value d. Choose project L, adds $238.37 to firm value C of 7.75%, which project should Carolina choose and how much value will that project add? At what cost of capital should Carolina be indifferent between projects S and L? a. 4.54% b. 5.75% c. 8.99% d. 11.78% 7