Question: A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: Year Cash Flow E Cash Flow F 0

  1. A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below:

    Year Cash Flow E Cash Flow F
    0 -$1,100 -$1,100
    1 1,000 0
    2 350 300
    3 50 1500

    The company's cost of capital is 12 percent, and it can get an unlimited amount of capital at that cost. What is the IRR of the better project?

    12.00%

    15.53%

    18.62%

    19.08%

    20.46%

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