Question

pls asap ??

Projects X and Y have the following expected net cash flows: Year Project X $-500,000 300,000 Project Y -$500,000 50,000 100,000 200,000 200,000 100,000 50,000 400,000 What is the Internal Rate of Return for the Project X? 16.6 percent 18.7 percent 12.3 percent

Answer 1

Project X

Internal rate of return can be calculated using a financial calculator by inputting the below:

• Press the CF button.
• CF0= -$500,000. The initial cash flow is indicated by a negative sign since it is a cash outflow.  
• Cash flow for each of the fifteen years should be entered.
• Press Enter and down arrow after inputting each cash flow.
• After entering the last cash flow cash flow, press the IRR and CPT button to get the IRR of the project.

The IRR of the project is 15.86%.

Project Y

Internal rate of return can be calculated using a financial calculator by inputting the below:

• Press the CF button.
• CF0= -$500,000. The initial cash flow is indicated by a negative sign since it is a cash outflow.  
• Cash flow for each of the fifteen years should be entered.
• Press Enter and down arrow after inputting each cash flow.
• After entering the last cash flow cash flow, press the IRR and CPT button to get the IRR of the project.

The IRR of the project is 13.46%.

                                                                                                                                    

In case of any query, kindly comment on the solution.