Analyzing two mutually exclusive projects

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A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below. Project S: -1,500 (Year 0), 1000 (Year 1), 560 (Year 2), 50 (Year 3). Project L: -1,200 (Year 0), 0 (Year 1), 600 (Year 2), 1,500 (Year 3). The company’s cost of capital is 12 percent. Project S’s IRR is . Project L’s IRR is.

Reference no: EM131020106

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