1) Project L requires an initial outlay at t = 0 of $54,000, its expected cash inflows are $9,000 per year for 12 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.

How many years?

2)

A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 + + Project-$1,000$890.51 $250 $5 $15 S Project-$1,000 $10 $250$380$796.78 L The company's WACC is 9.5%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places. %