Question
Problem 11-12 IRR and NPV A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3
Problem 11-12
IRR and NPV
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$875.53$250$10$10 Project L-$1,000$10$260$400$803.84
The 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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Financial Management Concepts and Applications
Authors: Stephen Foerster
1st edition
013293664X, 978-0132936644
