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Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 -$20,000 -$20,000 1 $8,850 10,100 2 9,100 7,800 3 8,800

Consider the following two mutually exclusive projects:

Year Cash Flow (X) Cash Flow (Y)
0 -$20,000 -$20,000
1 $8,850 10,100
2 9,100 7,800
3 8,800 8,700

Calculate the IRR for each project. (Round your answers to 2 decimal places. (e.g., 32.16)).

IRR Project X = ? %

Project Y = ? %

What is the crossover rate for these two projects? (Round your answer 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. Round your answers to 2 decimal places. (e.g., 32.16))

Discount Rate Project X Project Y
0% $ $
15% $ $
25% $ $

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