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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 $885.14
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 | $885.14 | $250 | $15 | $10 |
Project L | -$1,000 | $5 | $260 | $420 | $769.95 |
The company's WACC is 10.0%. What is the IRR of the better project?
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