A company is analysing 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.)

Question

A company is analysing 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.)

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The Answer of A company is analysing 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 Company Is Analysing Two Mutually Exclusive Projects, S and L