Question: Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 $ 19,700 $ 19,700 1 8,775 9,950 2 8,950 7,725
Consider the following two mutually exclusive projects:
| Year | Cash Flow (X) | Cash Flow (Y) | |||||
| 0 | $ | 19,700 | $ | 19,700 | |||
| 1 | 8,775 | 9,950 | |||||
| 2 | 8,950 | 7,725 | |||||
| 3 | 8,725 | 8,625 | |||||
Calculate the IRR for each project. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) IRR
Project X %
Project Y %
What is the crossover rate for these two projects? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Crossover rate %
What is the NPV of Projects X and Y at discount rates of 0%, 15%, and 25%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
| Discount rate | Project X | Project Y |
| 0% | $ | $ |
| 15% | $ | $ |
| 25% | $ | $ |
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