9. A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below:

Year Project S Project L

0 ($2,000) ($2,000)

1 ($ 1,800) ($ 2,000)

2 (500) ($ 2,500)

3 (20) (800)

4 (20) ($ 1,600

The company's cost of capital is 9%, and it can get an unlimited amount of capital at that cost. What is the regular IRR (not MIRR) of the better project? (Hint: Note that the better project may or may not be the one with the higher IRR.). Explain.