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 $875 41 $260 $5 $5 Project L $1,000 $0 $240 $380 $818 91 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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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 $875.41

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

Project S	-$1,000	$875.41	$260	$5	$5
Project L	-$1,000	$0	$240	$380	$818.91

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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