What is the irr of better project

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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 $868.99 $260 $15 $15

Project L - $1,000 $5 $250 $420 $745.99

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: EM132041230

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