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Following is information on two alternative investments being considered by Tiger Co. The company requires a...

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Finance

Following is information on two alternative investments beingconsidered by Tiger Co. The company requires a 7% return from itsinvestments.

Project X1Project X2
Initialinvestment$(106,000)$(172,000)
Expected netcash flows in year:
138,00079,500
248,50069,500
373,50059,500

Compute the internal rate of return for each of the projectsusing Excel functions. Based on internal rate of return, indicatewhether each project is acceptable. (Round your answers to2 decimal places.)

IRRAcceptable?
Project X1%
Project X2%
IRRAcceptable?
Project X1%
Project X2%

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Transcribed Image Text

Following is information on two alternative investments beingconsidered by Tiger Co. The company requires a 7% return from itsinvestments.Project X1Project X2Initialinvestment$(106,000)$(172,000)Expected netcash flows in year:138,00079,500248,50069,500373,50059,500Compute the internal rate of return for each of the projectsusing Excel functions. Based on internal rate of return, indicatewhether each project is acceptable. (Round your answers to2 decimal places.)IRRAcceptable?Project X1%Project X2%IRRAcceptable?Project X1%Project X2%

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