Problem 11-12 IRR and NPV A company is analyzing two mutually exclusive projects, S and L,...

Problem 11-12
IRR and NPV

A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:

Project S	-$1,000	$898.26	$240	$5	$10
Project L	-$1,000	$5	$250	$380	$827.29

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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Expert Solution

jeff jeffy answered 1 year ago

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