What is the irr of better project

Assignment Help Financial Management

Reference no: EM132041303

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 $896.92 $240 $10 $15

Project L -$1,000 $5 $250 $380 $850.78

The company's WACC is 8.0%. 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.

Reference no: EM132041303

Questions Cloud

Main characteristics of that environment : Please define some of the main characteristics of that environment providing specific examples to support your discussion.

Risk-free rate and invests-what is his expected return : An investor borrows $100 at the risk-free rate and invests this and a further $100 of his own in the market portfolio. What is his expected return?

How much will you have at the end : If you wait 10 years before making the deposit, so that it stays in the account for only 32 years, how much will you have at the end In 32 years you would.

Evaluate the workspace : BSBINN502 Build and sustain an innovative work environment - Workspace redesign - demonstrate knowledge of design requirements for workspaces

What is the irr of better project : A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: What is the IRR of the better project?

Developing nations for manufactured goods : The greater part of international trade consists of an exchange of raw materials from developing nations for manufactured goods from developed nations.

What is the firm sustainable growth rate : Plank's Plants had net income of $3,000 on sales of $40,000 last year. The firm paid a dividend of $1,500. Total assets were $200,000, of which $140,000.

Discuss strategies for guiding students for the demands : What are some ways students are encouraged to think about what they are learning?

Calculate your monthly payments on the mortgage : You plan to purchase a $200,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 6.50 percentage.

User Account

All Pages