Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:
1
2
3
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.
%
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