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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
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 $(120,000)$(200,000)
Expected net cash flows in:
Year 1 45,00090,000
Year 2 55,50080,000
Year 3 80,50070,000
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.(Round your answers to 2 decimal places.)
IRR
Project X1 - %?
Project X2 - %?
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