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A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 1 2 4 Project S -$1,000 $871.53 $260 $10 $10 Project L -$1,000 $0 $260 $400 $766.36 The company's WACC is 10.5%. 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. 11.90

A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 1 2 4 Project S -$1,000 $871.53 $260 $10 $10 Project L -$1,000 $0 $260 $400 $766.36 The company's WACC is 10.5%. 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. 11.90

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 1 2 4 Project S -$1,000 $871.53 $260 $10 $10 Project L -$1,000 $0 $260 $400 $766.36 The company's WACC is 10.5%. 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. 11.90 %
Transcribed Image Text:A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 1 2 4 Project S -$1,000 $871.53 $260 $10 $10 Project L -$1,000 $0 $260 $400 $766.36 The company's WACC is 10.5%. 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. 11.90 %
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