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 -200 100 140 50 10 Cashflow for L -200 10 10 90 260 Assume the company can get an unlimited amount of capital at that cost. WACC NPV (S) NPV (L) 5 596 10% 15% 20% 25% If the company's cost of capital is 10%, what is the net present value of each Project? What's the profit foregone if the IRR method used? Select one: O a NPVS = $33.35, NPVL = $63.24, S29.89 O b. NPVS = $63.24, NPVL = $33.35, S-29.89 Oc. NPVS = $82 28, NPVL = $75.63. $3.97 = = d. NPVS = $100.81, NPVL = $112.45, $11.25 Oe. NPVS = $51.01, NPVL = $62.58, S11.55 Continued from previous question. If the company's cost of capital is 15%, what is the net present value of each Project? Based on NPV, which project will you choose? Select one: O a. NPVS = $82. 28. NPVL = $75.63, L = L Ob. NPVS = $100.81, NPVL = $112.45 L Oc NPVS = $18.34, NPVL = $24.95 S O d. NPVS = $31.41, NPVL = $12.65, L O e NPVS = $31.41, NPVL = $24.09. S Continued from previous question. Which of the following statements is correct? Select one: a. The crossover rate should be between 10% and 15%. Ob. The crossover rate should be between 15% and 20%. O c. If the WACC is larger than the crossover rate, you will choose project L using the NPV method. O d. If the WACC is larger than the crossover rate, a conflict arises between the NPV and the IRR methods. Oe The crossover rate should be smaller than 10%