Year

Project $1$

Project $2$

$-$$$462,692$

$-$$$512,611$

$1$

$286,000$

$110,750$

$2$

$100,000$

$165,170$

$3$

$137,500$

$250,700$

$4$

$149,000$

$271,050$

Current Attempt in Progress

Management of Sandhill Automotive, a manufacturer of auto parts, is considering investing in two projects. The company typically compares project returns to a cost of funds of $17$ percent.

Compute the IRRs based on the cash flows. Which project$($s$)$ will be accepted? $($Round final answers to $3$ decimal places, e$.$g$.15\mathrm{.}251\%.)$

The IRR of project $1$ is

$\%$ and the project should be

The IRR of project $2$ is

$\%$ and the project shouldManagement of Sandhill Automotive, a manufacturer of auto parts, is considering investing in two projects. The company typically

compares project returns to a cost of funds of $17$ percent.

Compute the IRRs based on the cash flows. Which project$($s$)$ will be accepted? $($Round final answers to $3$ decimal places, e$.$g$.15\mathrm{.}251\%.)$

The IRR of project $1$ is

The IRR of project $2$ is

$\%$ and the project should be

$\%$ and the project should be

rejected