Question: Given the cash flows for projects S and L, which are MUTUALLY EXCLUSIVE projects, compute the capital budgeting metrics and based on your computations then recommend the best project. Cost of capital for both projects is 10%.
Project S Project L
0 -$2,000 -$1,650
1 $1,700 $600
2 -$400 $900
3 $600 -$175
4 $450 $800