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IRR AND NPV A company is analyzing two mutually exclusive projects, S and L, with the...

IRR AND NPV

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 $896.48 $240 $15 $10
Project L -$1,000 $0 $240 $400 $801.23

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.

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A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:

0 1 2 3 4
Project X -$1,000 $110 $320 $430 $700
Project Y -$1,000 $1,100 $90 $50 $55

The projects are equally risky, and their WACC is 8%. What is the MIRR of the project that maximizes shareholder value? Round your answer to two decimal places. Do not round your intermediate calculations.

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