BASICS OF CAPITAL BUDGETING You recently went to work for Allied Components Company, a

supplier of auto repair parts used in the after$-$market with products from Daimler AG$,$ Ford, Toyota,

and other automakers. Your boss, the chief financial officer $($CFO$),$ has just handed you the estimated

cash flows for two proposed projects. Project $L$ involves adding a new item to the firm's ignition system

line; it would take some time to build up the market for this product, so the cash inflows would increase

over time. Project $S$ involves an add$-$on to an existing line, and its cash flows would decrease over time.

Both projects have $3-$year lives because Allied is planning to introduce entirely new models after $3$ years.

Here are the projects' after$-$tax cash flows $($in thousands of dollars$)$:

Depreciation, salvage values, net operating working capital requirements, and tax effects are all

included in these cash flows. The CFO also made subjective risk assessments of each project, and he

concluded that both projects have risk characteristics that are similar to the firm's average project.

Allied's WACC is $10\%.$ You must determine whether one or both of the projects should be accepted.

e$.1.$ Draw NPV profiles for Projects L and S$.$ At what discount rate do the profiles cross?

Look at your NPV profile graph without referring to the actual NPVs and IRRs. Which project$($s$)$

should be accepted if they are independent? Mutually exclusive? Explain. Are your answers

correct at any WACC less than $23\mathrm{.}6\%?$ Please answer E$.1$ and $2.$ Thanks. Please do not use the other chart that is already on Course Hero as that chart is incorrect. Please show exactly where the npv profiles cross. Please draw out the chart in detail

I need a visual of the graph, please be detailed. I need the actual graph. Please do not utilize the other graph on similarly answered questions, please.