eBook Problem Walk$-$Through

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

$01234$

Project S $-$$$1,000$ $$894\mathrm{.}22$ $$250$ $$5$ $$5$

Project L $-$$$1,000$ $$10$ $$240$ $$420$ $$789\mathrm{.}87$A company is analyzing two mutually exclusive projects, $S$ and $L,$ with the following cash flows:

Project S

Project L

The company's WACC is $9\mathrm{.}0\%.$ 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.

$\%$