What is the irr of the better project


Problem: A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:

0    1    2    3 4
|    |    |    | |

S    -$1,000    $900    $250  $10   $10
L     -$1,000    $0    $250    $400  $800

The company's WACC is 10%. What is the IRR of the better project? I'm not sure that the better project may or may not be the one with the higher IRR.

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Finance Basics: What is the irr of the better project
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