Compute the internal rate of return for each of the projects

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Reference no: EM132554200

Question - Following is information on two alternative investments being considered by Tiger Co. The company requires a 5% return from its investments.

 

Project X1

Project X2

Initial investment

$(122,000)

$(204,000)

Expected net cash flame in:

Year 1

46,000

91,500

Year 2

56,500

81,500

Year 3

81,500

71,500

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: EM132554200

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