Question: A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 4 2 3 + Projects -$1,000 $878.75

A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 4 2 3 + Projects -$1,000 $878.75 $260 $15 $10 Project L -$1,000 $0 $260 $380 $821.78 The company's WACC is 10.0%. 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. %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
