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Compute the internal rate of return for each

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Reference no: EM133057139

Question - Following is information on two alternative investment projects being considered by Tiger Company. The company requires an 8% return from its investments.

 

Project X1

Project X2

Initial investment

$(88,000)

$(136,000)

Net cash flows in:

 

 

Year 1

29,000

66,000

Year 2

39,500

56,000

Year 3

64,500

46,000

Required - 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.

Reference no: EM133057139

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