13)

Following is information on two alternative investments being considered by Tiger Co. The company requires a 6% return from its investments.

	Project X1	Project X2
Initial investment		$	(94,000	)			$	(148,000	)
Expected net cash flows in year:
1			32,000					70,500
2			42,500					60,500
3			67,500					50,500

Compute the internal rate of return for each of the projects using Excel functions.(Round your answers to 2 decimal places.)

Based on internal rate of return, indicate whether each project is acceptable