Question
In: Finance
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:...
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.
Solutions
Expert Solution
Ans IRR of Project S: 11.97%
IRR of Project L: 12.85%
jeff jeffy answered 1 year agoRelated Solutions
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A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:...
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1
2
3
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Project S
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A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:...
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1
2
3
4
Project S
-$1,000
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$250
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$5
$240
$380
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2
3
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Project S
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$15
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Project L
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$380
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Round your answer to two decimal places. %
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