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1. (35 points) You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value

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1. (35 points) You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value. Year 0 1 2 3 4 5 6 7 8 9 10 Project(A) -$30,000 13,000 11,000 9,000 7.000 0 0 0 0 0 0 Project (B) -$30,000 5,000 5,000 5,000 5.000 5,000 5,000 5,000 5.000 5.000 5,000 The required rate of return is 10%. (8) Sketch the NPV profile. Plot all the relevant coordinates (i.e., the points on the x and y axis, and the cross-over rate) on the graph

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