1. IRR and NPV

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

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. ________%

b. Project L costs $35,000, its expected cash inflows are $9,000 per year for 9 years, and its WACC is 13%. What is the project's payback? Round your answer to two decimal places. _____ years

Project S $1,000 $896.74 $240 $10 $10 Project L $1,000 $5 $250 $420 $787.12