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6. Sunny Boat Rental Inc . is considering Projects A and B , whose cash flows are shown below . These projects are* mutually exclusive

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6. Sunny Boat Rental Inc . is considering Projects A and B , whose cash flows are shown below . These projects are* mutually exclusive , equally risky , and not repeatable . WACC: 6.00% Year O 1 2 CFA - $1 , 025 5380 5380 $380 5380 CF - $2 , 150 5765 $765 $765 5765 62 . Draw out the NPV profiles for project A and project B. Please be sure to calculate and label the crossover rate and the IRR for each project .6 6 . The CEO wants to use the IRR criterion , while the CFO favors the NPV method . You were hired to advise* Sunny Boat Rental Inc . on the best procedure . If the wrong decision criterion is used , how much potential value would the company lose ?" # WACC : 6.00% Year O 1 2 3 4 CFA -$1 , 025 5380 5380 $380 $380 CFB -$2 , 150 $765 5765 5765 5765

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