Internal Rate of Return Analysis Hermson Company must evaluate two capital expenditure proposals. Hermson's hurdle rate is 12%. Data for the two proposals follow.

	Proposal X	Proposal Y
Required investment	$370,000	$370,000
Annual after-tax cash inflows	90,000
After-tax cash inflows at the end of years 3, 6, 9, and 12		290,000
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 %