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Langton Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the shorter discounted payback, some value may be forgone. How much value will be lost in this instance? WACC 5.25% 0 Year Project S CF Project L CF $930.00 $2,050.00 1 $600.00 $400.00 2 $700.00 $600.00 3 $100.00 $700.00 4 $50.00 $1,200.00 Projects Discounted CF Cumulative Discounted CF Discounted Paybacks NPVS Project L Discounted CF Cumulative Discounted CF Discounted Payback, NPVL Value Lost
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