Invest X requires a capital outlay of $100 that will yield a cash flow of $150 in 5 years. Invest Y requires a capital outlay of $140 that will yield a cash flow of $220 in 5 years.
Group of answer choices
Investment Y has an internal rate of return of 11.43%.
Marginal investment (Y - X) has an additional capital outlay of $40 and an additional cash flow of $70 in five years.
Marginal investment Y- X has an internal rate of return of 14.87%.
Investment X as an internal rate of return of 8.45%.