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4. You are analyzing the following two mutually exclusive projects and have developed the following information. Year 0 1 2 3 Project A Cash flow

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4. You are analyzing the following two mutually exclusive projects and have developed the following information. Year 0 1 2 3 Project A Cash flow -75,000 24,800 29,500 45,300 Project B Cash flow -75,000 22,000 27,500 51,300 a. C. Calculate IRR of these projects. (2 Marks) b. What is the crossover rate? (4 Marks) Which project should be selected if the required rate of return on these projects is 10%? Explain. (2 Marks) d. Draw and label the NPV profiles of both projects A and B. (4 Marks)

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