Consider the following two mutually exclusive projects: Cash Flow Cash Flow Year (X) -$19,600 19,600 8,750 8,900 8,700 9,900 7,700 8,600 Calculate the IRR for each project. (Do not round intermedlate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project X Project Y % What is the crossover rate for these two projects? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Crossover rate What is the NPV of Projects X and Y at discount rates of 0 percent, 15 percent, and 25 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) 123

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Consider the following two mutually exclusive projects:
Cash Flow
Cash Flow
Year
(X)
()
0.
-$19,600
19,600
8,750
8,900
8,700
9,900
7,700
8,600
Calculate the IRR for each project. (Do not round intermedlate calculations. Enter your
answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Project X
Project Y
What is the crossover rate for these two projects? (Do not round Intermediate
calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Crossover rate
What is the NPV of Projects X and Y at discount rates of 0 percent, 15 percent, and 25
percent? (A negative answer should be indicated by a minus sign. Do not round
intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
23
Transcribed Image Text:Consider the following two mutually exclusive projects: Cash Flow Cash Flow Year (X) () 0. -$19,600 19,600 8,750 8,900 8,700 9,900 7,700 8,600 Calculate the IRR for each project. (Do not round intermedlate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project X Project Y What is the crossover rate for these two projects? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Crossover rate What is the NPV of Projects X and Y at discount rates of 0 percent, 15 percent, and 25 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) 23
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