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1. [Ch 11] Chapman Corp is planning to invest in two mutually exclusive projects: expanding the parking structures and building a new swimming pool. The

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1. [Ch 11] Chapman Corp is planning to invest in two mutually exclusive projects: expanding the parking structures and building a new swimming pool. The cash flows for the two projects are given below. IRR 0 -200 -200 1 25 200 Parking Structure 2 100 100 3 125 50 4 200 TRR 31.20% Swimming Pool 36.60% A) Define mutually exclusive projects. B) Find the NPV for these two projects at the following discount rates 0%, 10%, 25% and 35%. C) Carefully and neatly plot the NPV profile (i.e., plot NPV vs. discount rates in part B) AND explain which project should be chosen at each discount rate (0%, 10%, 15%, and 24%) and why? Note: I suggest you use MS Excel to produce the plot. Also, please be sure to label the x- and y-axes as well as identify the points at which the curves cross the x- and y-axes (i.e., write down the valuesumbers at which the curves cross both axes)

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