Annual after-tax cash inflows 34,000 After-tax cash inflows at the end of years 3, 6, 9, and 12 101,000 Life of project 12 years 12 years What is the internal rate of return for Proposal X? For Proposal Y? Use Excel to compute your answers. Round answers to the nearest whole percentage (ex: 0.1854 = 19%) Proposal X Answer % Proposal Y Answer
Annual after-tax cash inflows 34,000 After-tax cash inflows at the end of years 3, 6, 9, and 12 101,000 Life of project 12 years 12 years What is the internal rate of return for Proposal X? For Proposal Y? Use Excel to compute your answers. Round answers to the nearest whole percentage (ex: 0.1854 = 19%) Proposal X Answer % Proposal Y Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Cooper Corporation must evaluate two capital expenditure proposals. Cooper’s hurdle rate is 10%. Data for the two proposals follow.
| Proposal X | Proposal Y | |||
|---|---|---|---|---|
| Required investment |
|
|
||
| Annual after-tax |
|
|||
| After-tax cash inflows at the end of years 3, 6, 9, and 12 |
|
|||
| Life of project | 12 years | 12 years |
What is the internal rate of return for Proposal X? For Proposal Y?
Use Excel to compute your answers.
Round answers to the nearest whole percentage (ex: 0.1854 = 19%)
Proposal X Answer
%
Proposal Y Answer
%
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