Question
Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 $ 20,700 $ 20,700 1 9,025 10,450 2 9,450 7,975
Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 $ 20,700 $ 20,700 1 9,025 10,450 2 9,450 7,975 3 8,975 8,875 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.) IRR Project X % Project Y % 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.) Crossover rate % What is the NPV of Projects X and Y at discount rates of 0%, 15%, and 25%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Discount rate Project X Project Y 0% $ $ 15% $ $ 25% $ $
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