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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 -$1,000 $896.19 $240 $10 Project L -$1,000 $0 $260 $400 $15 $763.64 The company's WACC is 9.0%. 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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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
