Consider the following two mutually exclusive projects: Year 0 1 2 3 Cash Flow (X) -$30,000 13,700 14,200 13,400 Cash Flow (Y) -$30,000 15.600 12.200 13,300 Calculate the IRR for each project. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project X Project Y

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
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Author:MOYER
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Chapter10: Capital Budgeting: Decision Criteria And Real Option
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Consider the following two mutually exclusive projects:
Year
Cash Flow (X)
Cash Flow (Y)
0123
-$30,000
-$30,000
13,700
15.600
12,200
13,300
14,200
13,400
Calculate the IRR for each project. (Do not round intermediate calculations and enter
your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Project X
Project Y
%
%
What is the crossover rate for these two projects? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g..
32.16.)
Crossover rate
Transcribed Image Text:Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0123 -$30,000 -$30,000 13,700 15.600 12,200 13,300 14,200 13,400 Calculate the IRR for each project. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project X Project Y % % What is the crossover rate for these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16.) Crossover rate
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