Consider the following two mutually exclusive projects:

Year Cash Flow(X) Cash Flow (Y)

0 -$20,900 -$20,900

1 9,075 10,550

2 9,550 8,025

3 9,025 8,925

1.Calculate the IRR for project X and project Y.

2.What is the crossover rate for these two projects?

3.What is the NPV of Projects X and Y at discount rates of 0 percent, 15 percent, and 25 percent?

Project X Project Y

0%

15%

25%