IRR and NPV A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0. 1 3 4 T Project S -$1,000 Project L -$1,000 $900 $0 $250 $10 $10 $800 $250 $400 The company's WACC is 10 percent. What is the IRR of the better project? (Hint: Note that the better project may or may not be the one with the higher IRR.)

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curv…