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eBook Problem Walk-Through A company is analyzing two mutually exclusive projects, S and L, with the...

eBook Problem Walk-Through

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 $861.32 $260 $15 $15
Project L -$1,000 $0 $250 $400 $828.32

The company's WACC is 9.5%. 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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jeff jeffy answered 1 year ago
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