Question: 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 $881.88
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 | $881.88 | $260 | $5 | $15 |
| Project L | -$1,000 | $0 | $240 | $380 | $846.86 |
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.
____%
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