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:
0
1
2
3
4
Project S
-$1,000
$880.19
$250
$15
$10
Project L
-$1,000
$10
$240
$420
$792.65
The company's WACC is 8.5%. 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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