What is the irr of the better project

Assignment Help Financial Management

Reference no: EM132057499

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.

Reference no: EM132057499

Questions Cloud

Describe techniques that will be used by the coo : HR005: Describe techniques that will be used by the COO and within the team to identify, negotiate, and resolve conflicts.

Why is it important to understand drivers of profitabiliy : Why is it important to understand the drivers of profitability, as measured by the return on invested capital?

Define relationship in stress and coronary heart disease : Compare and contrast the relationship between stress and Coronary heart disease and infectious diseases. The response must be typed.

What can i do to encourage punctuality in attending : What can I do to encourage punctuality in attending your staff meetings?

What is the irr of the better project : The company's WACC is 8.5%. What is the IRR of the better project?

Discuss in detail how challenges can be addressed : Reflect on what they learned during this course and discuss what they see as the 1 or 2 biggest challenges related to a specific area of Fintech

Discuss the given topic-criminal behaviour : The prospectus will look like this but the topic will be on Criminal Behavior. The response must be typed, single spaced.

The standard deviation of the new portfolio : The correlation coefficient between the returns on A and B is 0.45. The standard deviation of the new portfolio is _________.

Determine the future value of target venture : Determine the future value of a target venture which has net income expected to be $30,000 at the end of four years from now.

User Account

All Pages