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 $879.71
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 $879.71 $240 $10 $10
Project L -$1,000 $0 $240 $400 $836.69
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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Finance For Real Estate Development
Authors: Charles Long
1st Edition
0874204305, 978-0874204308
