What is the irr of the better project


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    250    10     10
Project L     $1,000      0       250   400    800

The company's WACC is 10 percent. What is the IRR of the better project? (Hint: Note 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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