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Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 $ 20,100 $ 20,100 1 8,875 10,150 2 9,150 7,825
Consider the following two mutually exclusive projects: |
Year | Cash Flow (X) | Cash Flow (Y) | |||||
0 | $ | 20,100 | $ | 20,100 | |||
1 | 8,875 | 10,150 | |||||
2 | 9,150 | 7,825 | |||||
3 | 8,825 | 8,725 | |||||
Calculate the IRR for each project. What is the crossover rate for these two projects? What is the NPV of Projects X and Y at discount rates of 0%, 15%, and 25%? |
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