Question
Problem 11-12 IRR and NPV A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 01234 Project S -$1,000$875.53$250$10$10
Problem 11-12
IRR and NPV
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:
01234Project S-$1,000$875.53$250$10$10Project L-$1,000$10$260$400$803.84The 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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Practical Financial Management
Authors: William R. Lasher
8th edition
1305637542, 978-1305887237, 1305887239, 978-1305637542
