Question: Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 $ 19,800 $ 19,800 1 8,800 10,000 2 9,000 7,750
| Consider the following two mutually exclusive projects: |
| Year | Cash Flow (X) | Cash Flow (Y) | |||||
| 0 | $ | 19,800 | $ | 19,800 | |||
| 1 | 8,800 | 10,000 | |||||
| 2 | 9,000 | 7,750 | |||||
| 3 | 8,750 | 8,650 | |||||
| Calculate the IRR for each project. (Round your answers to 2 decimal places. (e.g., 32.16)). |
| IRR | |
| Project X | % |
| Project Y | % |
| What is the crossover rate for these two projects? (Round your answer 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. Round your answers to 2 decimal places. (e.g., 32.16)) |
| Discount rate | Project X | Project Y |
| 0% | $ | $ |
| 15% | $ | $ |
| 25% | $ | $ |
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