Question
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 Project S -$1000 $886.04
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:
| 0 | 1 | 2 | 3 | 4 | |
| Project S | -$1000 | $886.04 | $240 | $15 | $5 |
| Project L | -$1000 | $0 | $250 | $400 | $766.95 |
The company's WACC is 9.5%. 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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Analysis For Financial Management
Authors: Robert C Higgins
8th International Edition
0071257063, 9780071257060
