10.

IRR AND NPV

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

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Project S	-$1,000	$892.32	$250	$15	$5
Project L	-$1,000	$0	$240	$400	$852.82

The company's WACC is 10.5%. 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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