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 $890 17 $240 $10 $5 Project L $1,000 $0 $260 $400 $802 16 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

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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 $890.17

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

Project S	-$1,000	$890.17	$240	$10	$5
Project L	-$1,000	$0	$260	$400	$802.16

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.

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