Question
Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 $16,500 $16,500 1 6,650 7,170 2 7,230 7,790 3 4,750
Consider the following two mutually exclusive projects: |
Year | Cash Flow (X) | Cash Flow (Y) |
0 | $16,500 | $16,500 |
1 | 6,650 | 7,170 |
2 | 7,230 | 7,790 |
3 | 4,750 | 3,510 |
Requirement 1: |
(a) | What is the IRR of Project X? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
IRR | % |
(b) | What is the IRR of Project Y? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
IRR | % |
Requirement 2: |
What is the crossover rate for these two projects? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
Crossover rate | % |
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