question archive Company is analyzing two mutually exclusive projects, S and L, with the following cash flows: Year Project S Project L 0 -$1,000 -$1,000 1 $886
Company is analyzing two mutually exclusive projects, S and L, with the following cash flows: Year Project S Project L 0 -$1,000 -$1,000 1 $886
Subject:AccountingPrice: Bought3
Company is analyzing two mutually exclusive projects, S and L, with the following cash flows:
|
Year |
Project S |
Project L |
|
0 |
-$1,000 |
-$1,000 |
|
1 |
$886.38 |
$0 |
|
2 |
$250 |
$260 |
|
3 |
$15 |
$400 |
|
4 |
$10 |
$762.72 |
The company's WACC is 9.0%. 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.
