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 $898.04 $240 $5 $15 Project L -$1,000 $5 $260 $380 $820.79 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.

A.

B.

C.

SORRY FOR THE BAD FORMATTING, IT WAS DONE ON MY TABLET. THESE QUESTIONS ARE ADDRESSING THE FOLLOWING QUESTIONS ASKED IN A FINANCE PROBLEM. THANK YOU SO MUCH FOR YOUR HELP :)

A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 Project S Project L 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 -$1,000 $898.04 $5 $240 $15 $820.79 -$1,000 $5 $260 $380 An oil-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t = 0 of $12.4 million. Under Plan 1 of $14.88 million. Under Plan B, cash flows would be $2.2034 million per year for 20 A, all the oil would be extracted in 1 year, producing a cash flow at t years. The firm's WACC is 12.5%. a. Construct NPV profiles for Plans A and B. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. If an amount is any, sholde be indicated by a minus sign. Do not round intermediate calculations. Round your answers to two decimal zero, enter "0". Negative values, places. Discount Rate NPV Plan A NPV Plan B million 0% million $ million million 5 10 million million 12. million million 15 million million million 17 million 20 million million Identify each project's IRR. Do not round intermediate calculations. Round your answers to two decimal places. Project A % Project B: % Find the crossover rate. Do not round intermediate calculations. Round your answer to two decimal places. % b. Is it logical to assume that the firm would take on all available independent, average-risk projects with returns greater than 12.5% -Select- If all available projects with returns greater than 12.5% have been undertaken, does this mean that cash flows from past investments have an opportunity cost of only 12.5%, because all the company can do with these cash flows is to replace money that has cost of 12,5%? -Select- Does this imply that the WACC is the correct reinvestment rate assumption for a project's cash flows? -Select- A project has annual cash flows of $7,500 for the next 10 years and then $8,000 each year for the following 10 years. The IRR of this 20-year project is 12.46% If the firm's WACC is 12%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $