IRR: Mutually exclusive projects Nile Inc. wants to choose the better of two mutually exclusive projects that expand warehouse capacity. The projects' cash flows are shown in the following table: cost of capital is 18%. a. The internal rate of return (IRR) of project X is %. (Round to two decimal places.) - X Data table Is project X acceptable on the basis of IRR? (Select the best answer below.) (Click on the icon here O in order to copy the contents of the data table below into a spreadsheet.) Yes O No Project X $500,000 Project Y $310,000 The internal rate of return (IRR) of project Y is %. (Round to two decimal places.) Initial investment (CFo) Is project Y acceptable on the basis of IRR? (Select the best answer below.) Year (t) Cash inflows (CF,) $100,000 $120,000 O Yes $160.000 $140,000 f106 000 E170.000
IRR: Mutually exclusive projects Nile Inc. wants to choose the better of two mutually exclusive projects that expand warehouse capacity. The projects' cash flows are shown in the following table: cost of capital is 18%. a. The internal rate of return (IRR) of project X is %. (Round to two decimal places.) - X Data table Is project X acceptable on the basis of IRR? (Select the best answer below.) (Click on the icon here O in order to copy the contents of the data table below into a spreadsheet.) Yes O No Project X $500,000 Project Y $310,000 The internal rate of return (IRR) of project Y is %. (Round to two decimal places.) Initial investment (CFo) Is project Y acceptable on the basis of IRR? (Select the best answer below.) Year (t) Cash inflows (CF,) $100,000 $120,000 O Yes $160.000 $140,000 f106 000 E170.000
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 13P
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