Question: NRJ & Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive. The WACC for the company

NRJ & Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive. The WACC for the company is 6.00%. What is the IRR of the better project?

Year 0 1 2 3 4

CFS -$1,250 $500 $400 $350 $125

CFL -$950 $90 $200 $520 $610

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