Föllówing Is Information on two alternative Investments belng considered by Tiger Co. The company requlres a 4% return from Its Investments. Project X1 $(190,000) Project X2 $(160,000) Initial investment Expected net cash flows in: Year 1 35,000 45, 500 75,000 65, 000 55,000 Year 2 Year 3 70, 500 Compute the Internal rate of return for each of the projects using Excel functions. Based on Internal rate of return, Indicate whether each project Is acceptable. (Round your answers to 2 decimal places.) IRR Acceptable? Project X1 % Project X2 %
Föllówing Is Information on two alternative Investments belng considered by Tiger Co. The company requlres a 4% return from Its Investments. Project X1 $(190,000) Project X2 $(160,000) Initial investment Expected net cash flows in: Year 1 35,000 45, 500 75,000 65, 000 55,000 Year 2 Year 3 70, 500 Compute the Internal rate of return for each of the projects using Excel functions. Based on Internal rate of return, Indicate whether each project Is acceptable. (Round your answers to 2 decimal places.) IRR Acceptable? Project X1 % Project X2 %
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 7PA: There are two projects under consideration by the Rainbow factory. Each of the projects will require...
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