19) Consider the following investment project:

Year 0 1 2

Cash Flow -250 600 -360

Make an NPV Profile and graph the NPV with a discount rate equal to 0%, 5%, 10%, 15%, 20%,

25% and 30% to determine approximately where the IRR's are for this project and indicate when

this project should be accepted

35) Consider the following two independent investment projects:

Cash flows of project A:

0 1 2 3

-130 100 50 5

Cash flows of project B:

0 1 2 3 4 5

-130 90 40 40 40 40

If management only accepts projects that pay back in 3 years or less, according to the discounted

payback period rule, which projects will be selected? Use a discount rate of 10%.