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Why is this wrong? Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 4% return from its
Why is this wrong?
Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 4% return from its investments. Project x1 $ (90,000) Project x2 $ (140,000) Initial investment Net cash flows in: Year 1 Year 2 Year 3 30,000 40,500 65,500 67,500 57,500 47,500 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.) Answer is complete but not entirely correct. IRR 3.00 X % Project X1 Project X2 Acceptable? Yes Yes 1.14 X %Step by Step Solution
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