A project's NPV profile graph intersects the Y axis at 0% cost o capital and intersects the x-axis at the project's IRR (where NPV-0). The Y axis intersection point represents the project's undiscounted NPV The point at NPV Profile 2 project profiles cross one another is the crossover rate. The crossover rate can be found by calculating the IRR of the differences in the projects' cash flows Project Delta A steep? NP profile indicates that r in the cost of capital lead to large declines in NPV. If a project has most of its cash flows coming in later years, its NPV will declinesharply if the cost of capital increases; but a project whose cash flows come earlier will not b severely penalized by high capital costs. The significance of the crossover rate is that at any cost of capital less than the crossover rate, the NPV and IRR methods will provide the same conclusion for evaluating mutually exdlusive projects. However, at any cost of capital greater than the crossover rate, the NPV and IRR methods' condlusions will confict. In that situation, the NPVmethod will always provide the correct project accept result. Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Deprecia salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's W 11%. 600 Project A 1,200 Project B1,200 330 300 330 410 745 What is Project Delta's IRR? Do not round intermediate calculations. Round your answer to two decimal places. What is the significance of this IRR? itis the -Select-after this point when mutually exclusive projects are considered there is no conflict in project acceptance between the NPV and IRR approaches. Review the graphs below. Select the graph that correctly represents the correct NPV profile for Projects A and B by using the following drop down menu. , after this point when mutually exclusive projects are considered there is no conflict in project acceptance between the NPV and IRR approaches. Select- NPV Profiles A NPV Profiles B NPV Profiles PV (S 600 500 400 600 500 400 300 100 100 15 10 10 15