Exercise 24-22A (Algo) Using Excel to compute IRR LO P4Following is information on two alternative investments. Beachside Resort is considering building a new pool or spa. The companyrequires a 10% return from its investments.Initial investmentNet cash flown inPoolSpaYear 1Year 2IRR41,10057,10081,39591,50066,100Compute the internal rate of return for each of the projects using excel functions. (Round your answers to 2 decimal places.)Year 3Year 4Year 5%PoolSpa$ (171,000) $ (116,000)%33,10051,10067,10073,10025,100< PrevCheck my work13 of 13Next >

Internal rate of return is the rate at which company analysis the cash flows of the project at which…

Answered: Compute the internal rate of return for…

Compute the internal rate of return for each of the projects using excel functions. (Round your answers to 2 decimal places.)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter11: The Cost Of Capital

Section: Chapter Questions

Problem 19PROB

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Question

Exercise 24-22A (Algo) Using Excel to compute IRR LO P4
Following is information on two alternative investments. Beachside Resort is considering building a new pool or spa. The company
requires a 10% return from its investments.
Initial investment
Net cash flown in
Pool
Spa
Year 1
Year 2
IRR
41,100
57,100
81,395
91,500
66,100
Compute the internal rate of return for each of the projects using excel functions. (Round your answers to 2 decimal places.)
Year 3
Year 4
Year 5
%
Pool
Spa
$ (171,000) $ (116,000)
%
33,100
51,100
67,100
73,100
25,100
< Prev
Check my work
13 of 13
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