A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below:

Year Project S Project L

0 ($2,000) ($2,000)

1 1,800 0

2 500 500

3 20 800

4 20 1,600

The company's cost of capital is 9%, and it can get an unlimited amount of capital at that cost. What is the regular IRR (not MIRR) of the better project? (Hint: Note that the better project may or may not be the one with the higher IRR.)

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