Belonged 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 timeline below. Depreciation, 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 firms average project. Bellingers WACC is 12%

What is the significance of this IRR?

It is the [Equity Return/Crossover Rate/Interest Yield]select one of thoseafter 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 and select which graph accurately represents the correct NPV profile for Projects A and B by using the following drop down menu: