Question: Question 13 (20 points) Consider the following cash flows of two mutually exclusive projects. Year Cash Flow (X) Cash Flow (Y) 0 -200,000 -250,300 1
Question 13 (20 points) Consider the following cash flows of two mutually exclusive projects. Year Cash Flow (X) Cash Flow (Y) 0 -200,000 -250,300 1 66,000 50,410 2 7,450 170,690 3 245,000 113,750 Blank #1: What is the NPV for X if the required return is 12%? Blank #2: What is the NPV for Y if the required return is 12% Blank #3. What is the IRR of X? Blank #4: What is the IRR of Y? Blank #5: Based on your previous answers which project should the firm choose? Instruction: Round answers to two decimal places. Do not include % or $ sign. Blank # 1 Blank # 2 Blank # 3
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