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Acme Hotel is attempting to choose the better of two mutually exclusive projects for expanding thehotel's banquet facility. The relevant cash flows for the projects
Acme Hotel is attempting to choose the better of two mutually exclusive projects for expanding thehotel's banquet facility. The relevant cash flows for the projects are shown in the following table: Project X Project Y Initial investment (CF) $500,000 $310,000 Year (0) Cash inflows (CF) 1 $130,000 $120,000 $130,000 $140,000 3 $170.000 $85,000 4 $190.000 $90.000 5 $240,000 $40.000 %. Round to two The internal rate of return (IRR) of project Y is: decimals
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