Consider the following projects, X and Y where the firm can only choose one. Project X costs $$1300$ and has cash flows of $$477,$ $$111,$ $$452,$ $$268,$ $$526$ in each of the next $5$ years. Project Y also costs $$1300,$ and generates cash flows of $$496,$ $$293,$ $$468,$ $$378$ for the next $4$ years, respectively. WACC$=8\mathrm{.}75\%.$

A$)$ Draw the timelines for both projects: X and Y$.$

B$)$ Calculate the projects$$ NPVs$,$ IRRs, payback periods.

C$)$ If the two projects are independent, which project$($s$)$ should be chosen?

D$)$ If the two projects are mutually exclusive, which projects should be chosen?

E$)$ Plot NPV profiles for the two projects. Identify the projects$$ IRRs on the graph.

F$)$ If the WACC were $5$ percent, would this change your recommendation if the projects were

mutually exclusive? If the WACC were $12$ percent, would this change your recommendation? Explain your answers.

G$)$ There is a $$crossover rate$$ of X$$s and Y$$s NPV curves, and mark it on the graph with Point O$.$ Explain in words what this rate is and how it affects the choice between mutually exclusive projects.

H$)$ If it possible for conflicts to exist between the NPV and the IRR when independent projects are being evaluated? Explain your answer.Consider the following projects, $x$ and $Y$ where the firm can only choose one. Project $x$ costs

$$1300$ and has cash flows of $$477,$$$111,$$$452,$$$268,$$$526$ in each of the next $5$ years. Project $Y$

also costs $$1300,$ and generates cash flows of $$496,$$$293,$$$468,$$$378$ for the next $4$ years,

respectively. WACC $=8\mathrm{.}75\%.$

A$)$ Draw the timelines for both projects: $x$ and $Y.$

B$)$ Calculate the projects' NPVs$,$ IRRs, payback periods.

C$)$ If the two projects are independent, which project$($s$)$ should be chosen?

D$)$ If the two projects are mutually exclusive, which projects should be chosen?

E$)$ Plot NPV profiles for the two projects. Identify the projects' IRRs on the graph.

F$)$ If the WACC were $5$ percent, would this change your recommendation if the projects were

mutually exclusive? If the WACC were $12$ percent, would this change your

recommendation? Explain your answers.

G$)$ There is a "crossover rate" of X$\text{'}$s and Y$\text{'}$s NPV curves, and mark it on the graph with Point

O$.$ Explain in words what this rate is and how it affects the choice between mutually

exclusive projects.

H$)$ If it possible for conflicts to exist between the NPV and the IRR when independent projects

are being evaluated? Explain your answer.