What is the irr of the better project

Assignment Help Financial Management

Reference no: EM132064304

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 $896.53 $250 $5 $5 Project L -$1,000 $10 $260 $380 $821.65 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. %

Reference no: EM132064304

Questions Cloud

Leasing the machinery : With respect to leasing the machinery, describe how the Spanish Tunnel International and Washington Tunnels will record the amount

What is the gain-loss from only the futures contract : which position should the farmer take in the futures contract? What is the gain/loss from only the futures contract?

Space age furniture company : The Space Age Furniture Company manufactures tables and cabinets to hold microwave ovens and portable televisions.These products are made in various sizes

Difference between public and private debt offerings : Explain the difference between public debt offerings and private debt offerings. Provide a recent example of corporations using each type of offering.

What is the irr of the better project : The company's WACC is 10.5%. What is the IRR of the better project?

Costs of operating the business using excel : Costs of operating the business Using Excel, create a spreadsheet called operating_costs.xlsx that calculates the projected annual outgoing costs of running

Evaluate the level of responsibility of the company : Based on the information you researched, evaluate the level of responsibility of the company in terms of the effectiveness of the response to the security.

Four frames of organizations to a possible project : Apply the four frames of organizations to a possible project that involves the development of a new technology like mobile banking or online retail.

Human resources frame and metaphors : Identify and Interpret interrelationships of the frames - Suggest recommendations for organizational improvement - Structural Frame and Metaphors

User Account

All Pages