Question

Consider the following two mutually exclusive projects: Year Cash Flow (X) -$15,300 6,770 7,350 4,870 Cash Flow (Y) - $15.300 7,410 7,670 3,750 WN a. What is the IRR of Project X? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the IRR of Project Y? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the crossover rate for these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR IRR c. Crossover rate

Answer 1

А в year Project X Project Y Cash flows Cash flows -$15,300 $15,300 $6,770 $7,410 $7,350 $7,670 $4,870 $3,750 12.28% 12.42% IRR(B4:B7) IRR(C4:07) 1 2 3 IRR 7 Difference in cash flows year 0 1 Project Project Y Cash flows Cash flows -$15,300 $15,300 $6,770 $7,410 $7,350 $7,670 $4,870 $3,750 16 2 3 $0 $640 $320 $1,120 9.63% IRR(D14:017) Crossover rate