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Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 6% return from its investments. Project X1 Project

Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 6% return from its investments.

Project X1 Project X2
Initial investment $ (114,000) $ (188,000)
Net cash flows in:
Year 1 42,000 85,500
Year 2 52,500 75,500
Year 3 77,500 65,500

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.

Note: Round your answers to 2 decimal places.

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