Reference no: EM132704636

Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% return from its investments.

                                          Project X1                Project X2

Initial investment                       $(90,000)                  $(140,000)

Expected net cash flows in year: 1    30,000                        67,500

2                                                    40,500                          57,500

3                                                          65,500                      47,500

Problem 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.)