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Financial Management: IRR, Crossover Rates, NPV

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% $ $

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.

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