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Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 $ 20,600 $ 20,600 1 9,000 10,400 2 9,400 7,950
Consider the following two mutually exclusive projects:
Year | Cash Flow (X) | Cash Flow (Y) | |||||
0 | $ | 20,600 | $ | 20,600 | |||
1 | 9,000 | 10,400 | |||||
2 | 9,400 | 7,950 | |||||
3 | 8,950 | 8,850 | |||||
Calculate the IRR for each project. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
What is the crossover rate for these two projects? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
Discount rate | Project X | Project Y |
0% | $ | $ |
15% | $ | $ |
25% | $ | $ |
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