audio tomework Chapter 25 x C Colt Company Owns A Mi x Cezto.mheducation.com/hm.

Question

audio tomework Chapter 25 x C Colt Company Owns A Mi x Cezto.mheducation.com/hm.tpx Question 5 (o value: 10.00 points Following is information on two altermative investments being considered by Tiger Co. The company Expected net cash fows in year. Compute the internal rate of return for each of the projects using excel tunctions.(Round your answers requires a 5% return tom its investments. Initial investment $ (92,000) $(144,000) 31,000 41,500 69,000 59,000 66,500 49,000 to 2 decimal places.) Project X1 Project X2 Based on internal rate of return indicate whether each project is acceptable Projectx1 Yes Project x2 Yes

Explanation / Answer

Answer: Calculation of the IRR:

Answer:Project X should be accepted because it has highest IRR.

Particulars Project X1 Project X2 Intial investment -92000 -144000 Expected net cash flows in year:1 31000 69000 2 41500 59000 3 66500 49000 IRR 21% 12%

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.