Exercise 11-13A Internal rate of return LO P4

Following is information on two alternative investments being considered by Tiger Co. The company requires a 8% return from its investments.

	Project X1					Project X2
Initial investment		$	(98,000	)			$	(156,000	)
Expected net cash flows in year:
1			34,000					73,500
2			44,500					63,500
3			69,500					53,500

Compute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return, indicate whether each project is acceptable. (Round your answers to 2 decimal places.)