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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

 

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 $ (104,000) $ (168,000) Net cash flows in: Year 1 37,000 78,000 Year 2 Year 3 47,500 72,500 68,000 58,000 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.

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