Question: A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: Project S - $1,000 $868.34 $260 $5 $15 Project
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: Project S - $1,000 $868.34 $260 $5 $15 Project L - $1,000 $0 $240 $400 $798.47 The company's WACC is 8.5%. 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
