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The director of the capital budgeting for Giant Inc. has identified two mutually exclusive projects, L and S, with the following expected net cash flows:

The director of the capital budgeting for Giant Inc. has identified two mutually exclusive projects, L and S, with the following expected net cash flows:

Year

Project L

Project S

0

-$100

-$100

1

10

70

2

60

50

3

80

20

Both projects have a cost of capital of 12 percent. What is Project L's IRR?

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