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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 $887.13
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 | $887.13 | $240 | $10 | $5 |
Project L | -$1,000 | $0 | $240 | $420 | $847.01 |
The company's WACC is 10.0%. 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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