OLA #11.2 Due to a restricted budget, a company can only undertake one of the following projects: Project X : This project has an initial investment of $850,000 and annual profits of $400,000 in year...

OLA #11.2

Due to a restricted budget, a company can only undertake one of the following projects:



Project X: This project has an initial investment of $850,000 and annual profits of $400,000 in year 1, $400,000 in year 2 and $325,000 in year 3.



Project Y: This project has an initial investment of $850,000 and a profit of $1,050,000 in year 3.

a. Calculate the IRR for Project X.

b. Calculate the IRR for Project Y.

c. Which project should the company undertake?

Kindly add all the decimals DO NOT ROUND