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IRR and NPV A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:

0 1 2 3 4 Project S -$1,000 $868.18 $250 $10 $15

Project L -$1,000 $0 $260 $400 $827.46 The company's WACC is 9.0%.

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.

Financial Management, Finance

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