In: 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 $897.81 $240 $5 $5
Project L -$1,000 $0 $260 $380 $861.89
The company's WACC is 8.5%. 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.