Question: Problem Walk-Through eBook A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 123 $240 $10 $5 Projects $1,000

Problem Walk-Through eBook A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 123 $240 $10 $5 Projects $1,000 $900.62 $0 $1,000 $240 $380 $885.91 Project L The company's WACC is 8.0%. 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 decinal places eBook A firm with a WACC of 10% is considering the following mutually exclusive projects: 5 $40 $240 $120 Project 1 -$300 $40 $40 $240 Project 2 -$550 $200 $200 $120 $120 Which project would you recommend? Select the correct answer. a. Neither Project 1 nor 2, since each project's NPV NPV1. c. Project 1, since the NPV1 > NPV2. d. Both Projects 1 and 2, since both projects have NPV's > 0. e. Both Projects 1 and 2, since both projects have IRR's > 0

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