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A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 + Project S
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 + Project S Project L -$1,000 $873.92 $260 -$1,000 $5 $240 $5 $400 $10 $779.69 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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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
