Problem 1: Consider the following two mutually exclusive projects:
Year Cash Flow (X) Cash Flow (Y)
0 -$ 19,300 -$19,300
1 8,675 9,750
2 8,750 7,625
3 8,625 8,525
Calculate the IRR for each project. (Round your answers to 2 decimal places. (e.g., 32.16)).
IRR
Project X
Project Y
What is the crossover rate for these two projects? (Round your answer to 2 decimal places. (e.g., 32.16)).
Crossover rate %
Problem 2: What is the NPV of Projects X and Y at discount rates of 0%, 15%, and 25%? (Negative amount should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))
Discount rate Project X Project Y
0% $ $
15% $ $
25% $ $