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1) NPV versus IRR [LO1, 5] Consider the following two mutually exclusive projects: Sketch the NPV profiles for X and Y over a range of

1) NPV versus IRR [LO1, 5] Consider the following two mutually exclusive projects:

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Sketch the NPV profiles for X and Y over a range of discount rates from zero to 25 percent. What is the crossover rate for these two projects?

Year Cash Flow X) $15,000 OT 8.150 5,050 Cash Flow (Y) -$15.000 7,700 5,150 7.250 6,800

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