Compute the internal rate of return for each of the projects

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Reference no: EM132498962

Following is information on two alternative investments being considered by Tiger Co. The company requires a 8% return from its investments.

Project X1                                      Project X2

$(88,000) Initial Investment     $(136,000) Initial Investment

Expected net cash flows in:         Expected net cash flows in:

Year 1 29,000                          Year 1 66,000

Year 2 39,500                                Year 2 56,000

Year 3 64,500                           Year 3 46,000

Question 1: 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.)

Reference no: EM132498962

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