Consider the following projects, X and Y where the firm can only choose one. Project X costs $1200 and has cash flows of $147, $211, $352, $478, $526 in each of the next 5 years. Project Y also costs $1200, and generates cash flows of $293, $305, $438, $520 for the next 4 years, respectively. WACC=10%.

A) There is a crossover rate of Xs and Ys 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.

B) If it possible for conflicts to exist between the NPV and the IRR when independent projects are being evaluated? Explain your answer.