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 $885.83
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 | $885.83 | $240 | $10 | $15 |
| Project L | -$1,000 | $0 | $250 | $400 | $798.01 |
The company's WACC is 10.0%. 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.
%
A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:
| 0 | 1 | 2 | 3 | 4 |
| Project X | -$1,000 | $110 | $300 | $370 | $650 |
| Project Y | -$1,000 | $900 | $90 | $50 | $50 |
The projects are equally risky, and their WACC is 8%. What is the MIRR of the project that maximizes shareholder value? Round your answer to two decimal places. Do not round your intermediate calculations.
%
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