Question
Consider the following two mutually exclusive projects: Year 0 Cash Flow(X) - $19,200 Cash Flow(Y) -$19,200...
Consider the following two mutually exclusive projects:
Year 0 Cash Flow(X) - $19,200 Cash Flow(Y) -$19,200
Year 1 Cash Flow(X) 8,650 Cash Flow(Y) 9,700
Year 2 Cash Flow(X) 8,700 Cash Flow(Y) 7,600
Year 3 Cash Flow (X) 8,600 Cash Flow (Y) 8,500
A.) Calculate the IRR for each project.
Project X ___%
Project Y ___%
B.) What is the crossover rate for these two projects?
C.) What is the NPV of Projects X and Y at discount rates of 0 percent, 15 percent, and 25 percent?
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