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 $874.56
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 $874.56 $260 $5 $5 Project L -$1,000 $5 $260 $400 $752.27 The company's WACC is 9.5%. 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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