Question

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 | $870.33 | $260 | $5 | $10 |

Project L | -$1,000 | $0 | $240 | $400 | $844.26 |

The company's WACC is 8.5%. 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.

Answer #1

Please find the solution in the below image

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
$874.19
$260
$5
$5
Project L
-$1,000
$0
$240
$400
$792.04
The company's WACC is 9.5%. 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.
%

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
$900.69
$240
$5
$10
Project L
-$1,000
$0
$240
$420
$806.73
The company's WACC is
8.5%. 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.

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 $888.61
$260 $10 $5 Project L -$1,000 $10 $260 $380 $793.93 The company's
WACC is 8.5%. 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.

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
$882.23
$260
$15
$5
Project L
-$1,000
$5
$240
$400
$817.44
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
place

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
$872.40
$260
$15
$10
Project L
-$1,000
$10
$260
$400
$762.96
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.

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
$886.19
$250
$15
$5
Project L
-$1,000
$10
$260
$380
$784.81
The company's WACC is 8.5%. 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.

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
$889.30
$250
$10
$15
Project L
-$1,000
$10
$260
$420
$726.75
The company's WACC is 8.5%. 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.
%

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
$875.62
$240
$15
$15
Project L
-$1,000
$10
$260
$380
$762.25
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.

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
$888.85
$240
$15
$10
Project L
-$1,000
$5
$250
$420
$826.10
The company's WACC is 8.5%. 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.
%

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
$869.52
$250
$15
$10
Project L
-$1,000
$0
$260
$400
$780.94
The company's WACC is 9.5%. 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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