Compute the internal rate of return for each of the projects

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Reference no: EM133146490

Question - Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 6% return from its investments.

 

Project X1

Project X2

Initial investment

$(94,000)

$(148,000)

Net cash flows in:

 

 

Year 1

32,000

70,500

Year 2

42,500

60,500

Year 3

67,500

50,500

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: EM133146490

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