Question
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: Project S -$1,000 $892.64 $240 $15 $5 Project L
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:
| Project S | -$1,000 | $892.64 | $240 | $15 | $5 |
| Project L | -$1,000 | $5 | $250 | $420 | $773.28 |
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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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
