Question: NPV versus IRR Consider the following two mutually exclusive projects: Year Cash flow (X) Cash flow (Y) 0 -9500 -9500 1 5800 3500 2 4000

NPV versus IRR

Consider the following two mutually exclusive projects:

Year

Cash flow (X)

Cash flow (Y)

0

-9500

-9500

1

5800

3500

2

4000

5000

3

4000

6000

The NPV for X is $__________if the required rate of return is 10%. The NPV for Y is $__________if the required rate of return is 10%.

The NPV for X is $__________if the required rate of return is 15%.

The NPV for Y is $__________if the required rate of return is 15%.

The NPV for X is $__________if the required rate of return is 24%.

The NPV for Y is $__________if the required rate of return is 24%.

The cross overrate for these two projects is_____%.

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