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Following is information on two alternative investments being considered by Tiger Co. The company requires a...

Following is information on two alternative investments being considered by Tiger Co. The company requires a 7% return from its investments.

Project X1 Project X2
Initial investment $ (126,000 ) $ (212,000 )
Expected net cash flows in:
Year 1 48,000 94,500
Year 2 58,500 84,500
Year 3 83,500 74,500


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.)

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