Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% return from its investments.

Project X1 Project X2

Initial investment$(100,000) $(160,000)

Expected net cash flows in:

Year 1 35,000 75,000

Year 2 45,500 65,000

Year 3 70,500 55,000

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.