Pitt Company is considering two alternative investments. The company requires a 12% return from its investments. Neither option has a salvage value. Project X Project Y Initial investment $244,049...

Pitt Company is considering two alternative investments. The company requires a 12% return from its investments. Neither option has a salvage value.

	Project X	Project Y
Initial investment	$244,049	$180,396
Net cash flows anticipated:
Year 1	83,000	35,000
Year 2	59,000	56,000
Year 3	91,000	71,000
Year 4	82,000	68,000
Year 5	77,000	27,000

A.
Compute the IRR for both projects using the IRR spreadsheet function.

Project X	fill in the blank 1%
Project Y	fill in the blank 2%

B.
Which project should be recommended.

Extracted text: Pitt Company is considering two alternative investments. The company requires a 12% return from its investments. Neither option has a salvage value. Project X Project Y Initial investment $244,049 $180,396 Net cash flows anticipated: Year 1 83,000 35,000 Year 2 59,000 56,000 Year 3 91,000 71,000 Year 4 82,000 68,000 Year 5 77,000 27,000 A. Compute the IRR for both projects using the IRR spreadsheet function. Project X % Project Y % B. Which project should be recommended.