Tesar Chemicals is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusiv

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Tesar Chemicals is considering Projects S and L, whose cashflows are shown below. These projects are mutually exclusive,equally risky, and not repeatable. The CEO believes the IRRis the best selection criterion, while the CFO advocates theNPV. If the decision is made by choosing the project with thehigher IRR rather than the one with the higher NPV, how much, ifany, value will be forgone, i.e., what's the chosen NPV versus themaximum possible NPV? Note that (1) "true value" is measuredby NPV, and (2) under some conditions the choice of IRR vs. NPVwill have no effect on the value gained or lost.WACC: 8%
$33.32
$29.07
$26.95
$23.51
$21.19