ANALYZE the relationship between the NPV and the discount rate. You should not assume any specific r for this problem. I suggest that you create the NPV schedule (NPV vs r graph) for all three projects on the same graph. Use Excel' s chart menu. Calculate IRR's and Cross Over Ratios, do not assume r

Make a graph: To make data for the graph, fist input the series of discount rates from 0 to the biggest IRR. You can move in 1% increments. Do not use the NPV function in Excel. Rather type your own NPV formula for each project (lock in cash flows, but not the rate). Then paste and copy for the rest of your rates. Draw the graph. Analyze and make your conclusion, choose most preferred project.

4. You have been asked by your boss to evaluate three mutually exclusive projects. The cash flow estimates and costs of each project are given below 0 1 2 4 5 6 Project 3790 200 600 300 1000 2800 Project -3790 1000 1000 1000 1000 1000 5400 Project (all numbers are in thousands of dollars