What is the irr of the better project


Problem

IRR AND NPV A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 01234 Project S $1,000 $870 $250 $25 $25 Project L $1,000 $0 $250 $400 $845 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.)

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Managerial Accounting: What is the irr of the better project
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