A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 1 2 Project S -$1,000 $870.95 $260 $5 $10 Project L 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. -$1,000 $5 $260 $400 $803.94 %

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A:

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.