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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...

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Finance

A company is analyzing two mutually exclusive projects, S and L,with the following cash flows:

01234
Project S-$1,000$887.39$260$10$5
Project L-$1,000$5$250$400$833.00

The company's WACC is 9.0%. What is the IRR of the betterproject? (Hint: The better project may or may not be theone with the higher IRR.) Round your answer to two decimalplaces.

%

Answer & Explanation Solved by verified expert
3.8 Ratings (437 Votes)
I have calculated these in Excel Please take a look at thetables belowAlso I have first    See Answer
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A company is analyzing two mutually exclusive projects, S and L,with the following cash flows:01234Project S-$1,000$887.39$260$10$5Project L-$1,000$5$250$400$833.00The company's WACC is 9.0%. What is the IRR of the betterproject? (Hint: The better project may or may not be theone with the higher IRR.) Round your answer to two decimalplaces.%

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