Question
NPV versus IRR Consider the following two mutually exclusive projects: Year Cash flow (X) Cash flow (Y) 0 -9500 -9500 1 5800 3500 2 4000
NPV versus IRR
Consider the following two mutually exclusive projects:
| Year | Cash flow (X) | Cash flow (Y) |
| 0 | -9500 | -9500 |
| 1 | 5800 | 3500 |
| 2 | 4000 | 5000 |
| 3 | 4000 | 6000 |
The NPV for X is $__________if the required rate of return is 10%. The NPV for Y is $__________if the required rate of return is 10%.
The NPV for X is $__________if the required rate of return is 15%.
The NPV for Y is $__________if the required rate of return is 15%.
The NPV for X is $__________if the required rate of return is 24%.
The NPV for Y is $__________if the required rate of return is 24%.
The cross overrate for these two projects is_____%.
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