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 $885.20
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 | $885.20 | $260 | $5 | $5 |
| Project L | -$1,000 | $0 | $260 | $420 | $736.00 |
The company's WACC is 8.5%. 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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Banking Secrecy And Global Finance
Authors: Donato Masciandaro, Olga Balakina
1st Edition
1137400099, 978-1137400093
