Following is information on two alternative investments being considered by Tiger Co. The company requires a 8% return from its investments.Project X1Project X2Initial 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?IRRProject X1Project X2

Internal rate of return method: Internal rate of return method is one of the capital investment…

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

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

Essentials Of Business Analytics

1st Edition

ISBN:9781285187273

Author:Camm, Jeff.

Publisher:Camm, Jeff.

Chapter6: Data Mining

Section: Chapter Questions

Problem 17P

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Question

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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