Reference no: EM132982903

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                   $(120,000)             $(200,000)

Expected net cash flows in:
Year 1                                  45,000                     90,000
Year 2                                  55,500                     80,000
Year 3                                  80,500                     70,000

Problem 1: Compute the internal rate of return for each of the projects using Excel functions.