In: Finance
Project X is expected to generate cash flows of $5,000 per year for 5 years and its initial cost is $17,000. Project Y is mutually exclusive to Project S. Project Y costs $30,000, and its expected cash flows would be $8,750 per year for 5 years. If both projects have a WACC of 12%, what is the IRR of the better project?
a)12.00%
b)14.85%
c)13.65%
d)14.05%
e)14.40%