1.Here are the two cash flow forecasts for two mutually exclusive projects.Find out each projects discounted payback, NPV, IRR, and MIRR at a cost of capital of 8.25%.What is the projects crossover rate?Graph the NPV profiles for the projects.At what interest rates will you prefer project B to A?

TimeProject AProject B

0(8500)(9500)

136003900

224002900

328502900

452005550

2. Machines J and K have the following investment and operating costs:

Year0123

J1100012001300

K13000120013001400

Which machine is a better buy at a WACC of 10.5%?