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    Financial Management: IRR, Crossover Rates, NPV

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    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 %

    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% $ $

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    https://brainmass.com/business/financial-ratios/financial-management-irr-crossover-rates-npv-550653

    Solution Preview

    Hello, I will appreciate if you can award more credits only for this posting as it is time consuming.

    IRR of A, 19300= (8675/(1+r))+(8750/(1+r)^2)+(8625/(1+r)^3), so r= 16.65%

    IRR of B, 19300= ...

    Solution Summary

    The solution gives detailed steps on solving 3 financial questions such as ,finding IRR, Crossover Rates, NPV. All formula and calculations are shown and explained.

    $2.19

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