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ABSA is considering Projects S and L. These projects are mutually exclusive, equally risky, and not...

ABSA is considering Projects S and L. These projects are mutually exclusive, equally risky, and not repeatable and their cash flows are shown below

r = 10.00%
Year 0 1 2 3 4
Cash flow S -1,025 650 450 250 50
Cash flow L -1,025 100 300 500 700

Required:

If the decision is made by choosing the project with the higher IRR, how much value will be forgone? R

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