What is the IRR of Project X? ( Do not round intermediate calculations. Enter yo

Question

What is the IRR of Project X? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

What is the IRR of Project Y? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

What is the crossover rate for these two projects? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

  

Consider the following two mutually exclusive projects:

Explanation / Answer

Answer:

1

Calculation of IRR for Project X

Year

Cash Flow (X)

0

-15700

1

6730

2

7310

3

4830

IRR

10.34%

2

Calculation of IRR for Project Y

Year

Cash Flow (Y)

0

-15700

1

7330

2

7710

3

3670

IRR

10.37%

1

Calculation of IRR for Project X

Year

Cash Flow (X)

0

-15700

1

6730

2

7310

3

4830

IRR

10.34%

2

Calculation of IRR for Project Y

Year

Cash Flow (Y)

0

-15700

1

7330

2

7710

3

3670

IRR

10.37%

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