Overview
I'm working on a mathematics multi-part question and need the explanation and answer to help me learn.
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:
01234Project S-$1,000$875.74$260$10$10Project L-$1,000$5$240$420$761.07
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.
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