A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: Project S -$1,000 $899.96 $240 $15 $5 Project L -$1,000 $10 $250 $380 $843.66 The company's WACC is 10.0%. 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.
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: Project S -$1,000 $899.96 $240 $15 $5 Project L -$1,000 $10 $250 $380 $843.66 The company's WACC is 10.0%. 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.
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 7P
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A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:
Project S | -$1,000 | $899.96 | $240 | $15 | $5 |
Project L | -$1,000 | $10 | $250 | $380 | $843.66 |
The company's WACC is 10.0%. What is the
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