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

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Finance

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 $885.08$260 $5 $5 Project L -$1,000 $5 $250 $400 $846.78 The company'sWACC is 8.0%. What is the IRR of the better project? (Hint: Thebetter project may or may not be the one with the higher IRR.)Round your answer to two decimal places. %

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Lets calculate Net present value NPV Internal rate ofreturn IRR of projectWhereThe formula for NPV isNet present value NPV of Project Sum of net cash inflows1r t initial cash outflowWhereThe weighted average cost of    See Answer
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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 $885.08$260 $5 $5 Project L -$1,000 $5 $250 $400 $846.78 The company'sWACC is 8.0%. What is the IRR of the better project? (Hint: Thebetter project may or may not be the one with the higher IRR.)Round your answer to two decimal places. %

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