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 $882.01
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 $882.01 $250 $15 $15 Project L -$1,000 $5 $260 $420 $737.67 The company's WACC is 10.0%. 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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Money And Capital Markets
Authors: Peter Rose, Milton Marquis
10th Edition
0077235800, 9780077235802
