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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 $899.38 $240 $5 $5
Project L -$1,000 $0 $260 $400 $818.04

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.

Financial Management, Finance

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