Question: Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 $ 19,100 $ 19,100 1 8,625 9,650 2 8,650 7,575

Consider the following two mutually exclusive projects:

Year Cash Flow (X) Cash Flow (Y)
0 $ 19,100 $ 19,100
1 8,625 9,650
2 8,650 7,575
3 8,575 8,475

What is the IRR for each project?

What is the crossover rate for these two projects?

What is the NPV of Projects X and Y at discount rates of 0 percent, 15 percent, and 25 percent?

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