A firm is considering Projects S and L,whose cash flows are shown below.These projects are mutually exclusive,equally risky,and not repeatable.The CEO wants to use the IRR criterion,while the CFO favors the NPV method.You were hired to advise the firm on the best procedure.If the wrong decision criterion is used,how much potential value would the firm lose? 
Definitions:
Equity Method
An accounting technique used by firms to assess the profits earned by their investments in other companies, by reporting these profits as income.
Common Stock
A type of security that signifies ownership in a corporation and represents a claim on part of the company's profits and assets.
Equity Method
An accounting technique used by a company to record its investment in another company when it has significant influence but not full control over that company.
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