Question
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 Project S -$1,000 $887.41
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:
| 0 | 1 | 2 | 3 | 4 |
| Project S | -$1,000 | $887.41 | $250 | $15 | $5 |
| Project L | -$1,000 | $5 | $240 | $380 | $803.29 |
The company's WACC is 10.0%. 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.
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Economics For Financial Markets
Authors: Brian Kettell
1st Edition
0750653841, 978-0750653848
