Atlas corp. is considering two mutually exclusive projects. both require an initial investment of $10,000 at t = 0. project s has an expected life of 2 years with after-tax cash inflows of $6,000 and $8,000 at the end of years 1 and 2, respectively. project l has an expected life of 4 years with after-tax cash inflows of $4,373 at the end of each of the next 4 years. each project has a wacc of 9.25%, and project s can be repeated with no changes in its cash flows. the controller prefers project s, but the cfo prefers project l. how much value will the firm gain or lose if project l is selected over project s, i. e., what is the value of npvl - npvs? a. $56.50b. $62.15c. $68.37d. $75.21e. $82.73

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500