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4. Projects L and S in the NPV profile diagram are mutually exclusive and the profiles crossover at a discount rate of 8.7%. a. IRRs>IRRL.
4. Projects L and S in the NPV profile diagram are mutually exclusive and the profiles crossover at a discount rate of 8.7%. a. IRRs>IRRL. Should you use IRR to choose select between project S and L? Explain. b. For discounts rates of less than 8.7%, which project do you accept? In other words, which project adds the most value? Why? c. For discounts rates above 8.7%, which project do you accept? In other words, which project adds the most value? Why
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