Question: A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 4 1 % 2 3 -$1,000 $883.25

A company is analyzing two mutually exclusive projects, S and L, with

A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 4 1 % 2 3 -$1,000 $883.25 $260 $5 Project S Project L $5 $400 $781.96 - $1,000 $5 $240 The company's WACC is 10.5%. 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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