Use the information to answer the following questions. A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below:

	Year 0	Year 1	Year 2	Year 3	Year 4
Cashflow for S	-100	40	50	30	30
Cashflow for L	-100	10	10	50	90

Assume the company can get an unlimited amount of capital at that cost.

	NPV Method		IRR Method	Conclusion
	Evaluation	Decision		Evaluation	Decision
WACC	NPVS	NPVL		WACC	IRRS	IRRL
5%				5%
10%				10%
15%				15%
20%				20%
25%				25%

If the company's cost of capital is 5% and the decision is made by choosing the project with the higher IRR, how much value will be forgone? (Hint: Complete the NPV profile)

Group of answer choices

a. $20.80

b. $29.89

c. $ 4.01

d. $12.45

e. $ 1.79