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Consider the following two mutually exclusive projects: Cash Flow Cash Flow Year (X) M 0 -$20,300 20,300 1 8,925 10,250 23 9,250 7,875 3
Consider the following two mutually exclusive projects: Cash Flow Cash Flow Year (X) M 0 -$20,300 20,300 1 8,925 10,250 23 9,250 7,875 3 8.875 8,775 Calculate the IRR for each project. (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete and correct. Project X Project Y 15.86 16.03 % % What is the crossover rate for these two projects? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete and correct. Crossover rate 10.60 % What is the NPV of Projects X and Y at discount rates of 0 percent, 15 percent, and 25 percent? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) 0% 15% 25% Answer is not complete. Project X 6,750.00 Project Y 6,600.00
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Answers To calculate the IRR for each project we can use the formula IRR CF1 1 r1 CF2 1 r2 CFn 1 rn ...Get Instant Access to Expert-Tailored Solutions
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