Question: Click here to read the eBook: Net Present Value (NPV) Click here to read the eBook: Internal Rate of Return (IRR) . Problem Walk-Through IRR
Click here to read the eBook: Net Present Value (NPV) Click here to read the eBook: Internal Rate of Return (IRR) . Problem Walk-Through IRR AND NPV A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 3 4 Project S $1,000 $903.30 $240 $5 $15 Project L$1,000 $5 $260 $380 $842.84 The company's WACC is 9.5%, 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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