Following is information on two alternative investments being considered by Tiger Co. The company requires a 7% return from its investments. Project x1 $(86,000) Project x2 $ (132,000) Initial investment Expected net cash flows in year: 28,000 38,500 63,500 64,500 54,500 44,500 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.) IRR Acceptable? Project X1 Project X2 A machine can be purchased for $215,000 and used for five years, yielding the following net incomes. In projecting net incomes, double-declining depreciation is applied, using a five-year life and a zero salvage value. Net income Year 1 $15,000 Year 2 $32,000 Year 3 $75,000 Year 4 $59,500 Year 5 $131,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Annual Depr. (40% Accumulated of Book Value) Depreciation at Year-End Year Beginning Book Value Ending Book Value Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow $ (215,000) 0 $ (215,000) 15,000 32,000 75,000 59,500 131,000 75,000 59,500 131,000 75,000 134,500 265,500 Payback period = years