C D F G H Grandview Inc. has identified the following two mutually exclusive projects. The company's required return is 11%. Year 0 1 2 Project K -$19,000 $4,400 $12,300 $9,200 $5,100 Project M -$19,000 $900 $1,800 $15,200 $16,800 4 1) What is the IRR for each of these projects? Using the IRR decision rule, which project should the company accept? Project K Project M IRR Choose: 2) What is the NPV for each of these projects? Using the NPV decision rule, which project should the company accept? Project K Project M NPV Choose: Q6 07 Q8 Cover Page 01 02 03 04 05 09 Calibri Wiop text General BIO A- Meige Center $ - % Conditional Format Formatting Table board Font Alignment Number Styles 3 F G H 3) Create an NPV Profile to include discount rates between 0% and 25% for both Project and Project M. Prepare a chart to display the impact of these discount rates on the NPV for both projects. Position the chart in the space provided. Rate NPV - Proj. K NPV - Proj.M place chart here Crossover rate 4) What does the Crossover rate tell you? Calib Wiap lext General ID BTU- ille 14 Merge & Center $ % Conditional For Formatting Style Clipboard Font Alignment Number A13 R G H D 51 52 53 5) At what rates would the company choose Project K? 54 55 56 57 58 59 60 61 62 6B 64 65 66 161 08 69 Cover Page 21 02 23 04 os 05 @7 08 09