A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:...

Transcribed Image Text:

A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 1 2 3 4 Project S Project L -$1,000 $884.88 $260 -$1,000 $0 $5 $260 $380 $10 $788.16 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. % A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 1 2 3 4 Project S Project L -$1,000 $884.88 $260 -$1,000 $0 $5 $260 $380 $10 $788.16 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. %

Answer rating: 100% (QA)

To find the internal rate of return IRR of each proje... View the full answer