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5) (15 pts total) Consider the cash flows and Project B Section 2 Problems sider the cash flows from two mutually exclusive projects, Project A

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5) (15 pts total) Consider the cash flows and Project B Section 2 Problems sider the cash flows from two mutually exclusive projects, Project A Year Cash Flow (Proj A) -200 20 120 160 Cash Flow (Proj B) -200 140 100 40 a) (5 pts) Construct NPV profiles for each project and graph them (one graph - both profiles). b) (5 pts) Compute the crossover rate e (5 pts) Briefly explain the conflict that arises between the NPV and the IRR when the discount rate is less than crossover rate

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