A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: ° 1 2 3 4 + + + Project S Project L -$1,000 $877.01 -$1,000 $5 $260 $240 $5 $400 $5 $799.36 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: ° 1 2 3 4 + + + Project S Project L -$1,000 $877.01 -$1,000 $5 $260 $240 $5 $400 $5 $799.36 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. %
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
Problem 1PS
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