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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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