Company is analyzing two mutually exclusive projects

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IRR AND NPV 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 $885.14    $250    $15    $10

Project L $1,000    $10 $260 $380 $780.27

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. %

Reference no: EM132053191

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