The cash flows and initial investment for two different projects are given below Calculate the internal rate of return for the projects. Based on IRR identify which project should be accepted. (Higher rate take value between 18% & 20%. Years Project X Project Y 130,000 85,000 25,000 40,000 2 35,000 35,000 3 45,000 30,000 50,000 10,000 5 55,000 5,000 Cost of capital 12% 12%

The cash flows and initial investment for two different projects are given below Calculate the internal rate of return for the projects. Based on IRR identify which project should be accepted. (Higher rate take value between 18% & 20%. Years Project X Project Y 130,000 85,000 25,000 40,000 2 35,000 35,000 3 45,000 30,000 50,000 10,000 5 55,000 5,000 Cost of capital 12% 12%

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

5th Edition

ISBN:9781305084766

Author:Saeed Moaveni

Publisher:Saeed Moaveni

Chapter20: Engineering Economics

Section: Chapter Questions

Problem 24P

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