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 internal rate of return (IRR) for Project S? Project L? Based on IRR, which project will you choose?

Select one: PLEASE SHOW WORK AND EXPLAIN, THANKS

a. 22.07%, 17.54%, L

b. 19.93%, 15.67%, L

c. 20.12%, 18.91%, S

d. 19.93%, 17.83%, S

e. 10.00%, 22.55%, L