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Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% return from its investments. Project x1 $ (130,000) Project X2 $ (220,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 50,000 60,500 85,500 97,500 87,500 77,500 Compute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return, indicate whether each project is acceptable. (Round your answers to 2 decimal places.) IRR Acceptable? Project X1 Project X2 Heels, a shoe manufacturer, is evaluating the costs and benefits of new equipment that would custom fit each pair of athletic shoes. The customer would have his or her foot scanned by digital computer equipment; this information would be used to cut the raw materials to provide the customer a perfect fit. The new equipment costs $91,000 and is expected to generate an additional $36,000 in cash flows for five years. A bank will make a $91,000 loan to the company at a 10% interest rate for this equipment's purchase. Compute the recovery time for both the payback period and break-even time. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Complete this question by entering your answers in the tabs below. Payback Period Break even time Compute the recovery time for the payback period. Payback Period Choose Denominator: Choose Numerator: 1 = Payback Period Payback period Payback Period Break even time > Complete this question by entering your answers in the tabs below. Payback Period Break even time Compute the recovery time for the break-even time. (Cumulative net cash outflows must be entered with a minus sign. Round your Break-even time answer to 1 decimal place.) Chart Values are Based on: Cash Inflow (Outflow) x PV Factor = Present Value Cumulative Present Value of Inflow (Outflow) 0 $ (91,000) x 1.0000 = $ (91,000) $ (91,000)