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 $871.71
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 $871.71 $260 $10 $15 Project L -$1,000 $0 $260 $380 $824.11
The company's WACC is 10.5%. 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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Modern Equity Investing Strategies
Authors: Anatoly B Schmidt
1st Edition
9811239495, 978-9811239496
