Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0-$20,700 -$20,700 1 9,025 10,450 2 9,450 7,975 3 8,975 8,875 Calculate the IRR for each project. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.). What is the crossover rate for these two projects? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g ., 32.16.) What is the NPV of Projects X and Y at discount rates of 0 percent, 15 percent, and 25 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0-$20,700 -$20,700 1 9,025 10,450 2 9,450 7,975 3 8,975 8,875 Calculate the IRR for each project. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.). What is the crossover rate for these two projects? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g ., 32.16.) What is the NPV of Projects X and Y at discount rates of 0 percent, 15 percent, and 25 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Consider the following two mutually exclusive projects:
Year Cash Flow
(X) Cash Flow
(Y)
0-$20,700 -$20,700
1 9,025
10,450
2 9,450 7,975
3 8,975 8,875
Calculate the IRR for each project. (Do not round
intermediate calculations. Enter your answers as a
percent rounded to 2 decimal places, e.g., 32.16.).
What is the crossover rate for these two projects? (Do
not round intermediate calculations. Enter your answer
as a percent rounded to 2 decimal places, e.g
., 32.16.)
What is the NPV of Projects X and Y at discount rates of
0 percent, 15 percent, and 25 percent? (A negative
answer should be indicated by a minus sign. Do not
round intermediate calculations and round your
answers to 2 decimal places, e.g., 32.16.)
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