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 $890.24
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 $890.24 $250 $15 $5 Project L -$1,000 $5 $250 $400 $823.57
The company's WACC is 10.5%. What is the IRR of the betterproject? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places.
%
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 | $890.24 | $250 | $15 | $5 |
| Project L | -$1,000 | $5 | $250 | $400 | $823.57 |
The company's WACC is 10.5%. What is the IRR of the betterproject? (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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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
978-1259307416
