Internal Rate of Return Analysis

Cooper Corporation must evaluate two capital expenditure proposals. Cooper's hurdle rate is 10%. Data for the two proposals follow.

Proposal X Proposal Y

Required investment 220,000 220,000

Annual after-tax cash inflows 46,000

After-tax cash inflows at the end of years 3, 6, 9, and 12 134,000

Life of project 12 years 12 years

What is the internal rate of return for Proposal X For Proposal Y?

Use Excel to compute your answers.

Round answers to the nearest whole percentage (ex: 0.1854 = 19%)

Proposal X

%

Proposal Y

%