Which project will you choose? Use the following information to answer the next THREE 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	-150	10	10	50	200

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

WACC	NPV (S)	NPV (L)
5%
10%
15%
17%
20%

If the companys cost of capital is 15%, what is the net present value of each Project? Based on NPV, which project will you choose?

PLEASE SHOW WORK AND EXPLAIN, THANKS

Select one:

a. NPVS = $100.81, NPVL = $112.45, L

b. NPVS = $33.35, NPVL = $63.24, L

c. NPVS = $82.26, NPVL = $75.63, L

d. NPVS = $20.72, NPVL = $41.52, S

e. NPVS = $9.47, NPVL = $13.48, L