A. A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:

0

1

2

3

4

Project S	-$1,000	$897.11	$240	$10	$10
Project L	-$1,000	$0	$240	$400	$781.09

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.

%

B. Project L requires an initial outlay at t = 0 of $25,000, its expected cash inflows are $5,000 per year for 9 years, and its WACC is 11%. What is the project's discounted payback? Do not round intermediate calculations. Round your answer to two decimal places.

years