A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: The company's required rate of return is 12 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.)
A)13.09%
B)12.00%
C)17.46%
D)13.88%
E)12.53%

Question

A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below:  The company's required rate of return is 12 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.)
A)13.09% 
B)12.00% 
C)17.46% 
D)13.88% 
E)12.53%

Quizplus · Accepted Answer

The Answer of A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below:  The company's required rate of return is 12 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.)
A)13.09% 
B)12.00% 
C)17.46% 
D)13.88% 
E)12.53%

A Company Is Analyzing Two Mutually Exclusive Projects, S and L