Reference no: EM132467201

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               5  (90,000)                    5(140,000)
Expected net cash flows in:
 Year 1                              30,000                         67,900
Year 2                              40,500                           57,500
Year 3                              65,500                           47,500

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.