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Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 $ 20,300 $ 20,300 1 8,925 10,250 2 9,250 7,875

Consider the following two mutually exclusive projects:

Year Cash Flow (X) Cash Flow (Y)
0 $ 20,300 $ 20,300
1 8,925 10,250
2 9,250 7,875
3 8,875 8,775

a) Calculate the IRR for each project.

b) What is the crossover rate for these two projects?

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