XYZ Corporation evaluates two projects. Projects x and y; the below table shows their cash flows. These projects are mutually exclusive, equally risky and are not repeatable. If the decision is made by choosing the Project with the higher IRR, how much value will be forgone? Wacc %8 01234CF(X)($1,050)$675$650 CF(Y)($1,050)$360$360$360$360a. IRR of Project X: %..........b. IRR of Project Y: %..........c. NPV of Project X: $............d. NPV of Project Y: $............e. The Value forgone: $.............. Click to see additional instructionsXYZ corporation evaluates two projects, Projects X and Y; the below table shows their cash flows. These projects are mutually exclusive, equally risky, and are not repeatable. Ifthe decision is made by choosing the project with the higher IRR, how much value will be forgone?WACC: 8.00%13.4CFx ($1,050) $675 $650CFy ($1,050) $360 $360 $360 $360(Round to TWO decimals.)a. IRR of Project X:%.b. IRR of Project Y:%.C. NPV of Project X: $d. NPV of Project Y: $e. The value forgone: $

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Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 2CMA: Staten Corporation is considering two mutually exclusive projects. Both require an initial outlay of...

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XYZ Corporation evaluates two projects. Projects x and y; the below table shows their cash flows. These projects are mutually exclusive, equally risky and are not repeatable. If the decision is made by choosing the Project with the higher IRR, how much value will be forgone? Wacc %8

	0	1	2	3	4
CF(X)	($1,050)	$675	$650
CF(Y)	($1,050)	$360	$360	$360	$360

a. IRR of Project X: %..........

b. IRR of Project Y: %..........

c. NPV of Project X: $............

d. NPV of Project Y: $............

e. The Value forgone: $..............

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XYZ corporation evaluates two projects, Projects X and Y; the below table shows their cash flows. These projects are mutually exclusive, equally risky, and are not repeatable. If
the decision is made by choosing the project with the higher IRR, how much value will be forgone?
WACC: 8.00%
1
3.
4
CFx ($1,050) $675 $650
CFy ($1,050) $360 $360 $360 $360
(Round to TWO decimals.)
a. IRR of Project X:
%.
b. IRR of Project Y:
%.
C. NPV of Project X: $
d. NPV of Project Y: $
e. The value forgone: $

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