FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Following is information on two alternative investments being considered by Tiger Co. The company requires a 8% return from its investments.

Project X1 Project X2
Initial investment   $ (128,000 )     $ (216,000 )  
Expected net cash flows in:                    
Year 1     49,000         96,000    
Year 2     59,500         86,000    
Year 3     84,500         76,000    
 

 

ompute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return,
hdicate whether each project is acceptable. (Round your answers to 2 decimal places.)
Acceptable?
IRR
Project X1
Project X2
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Transcribed Image Text:ompute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return, hdicate whether each project is acceptable. (Round your answers to 2 decimal places.) Acceptable? IRR Project X1 Project X2
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