Question: A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: 0 1 2 3 4 S -1,000 900

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

0 1 2 3 4
S -1,000 900 250 10 10
L -1,000 0 250 400 800

a. What is the IRR of both projects?

b. Which project would you accept?

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