Question: Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 $ 23,000 $ 23,000 1 10,490 12,000 2 10,900 9,360

Consider the following two mutually exclusive projects:
Year Cash Flow (X) Cash Flow (Y)
0 $ 23,000 $ 23,000
1 10,490 12,000
2 10,900 9,360
3 10,500 10,400

Calculate 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%, 15%, and 25%?

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