Question: A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: Project S -$1,000 $910.23 $240 $5 $5 Project L
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:
| Project S | -$1,000 | $910.23 | $240 | $5 | $5 |
| Project L | -$1,000 | $5 | $260 | $400 | $801.62 |
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
