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Consider two mutually exclusive projects. That is, you have to choose only one of these two projects. The first project, project A is a 5-year

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Consider two mutually exclusive projects. That is, you have to choose only one of these two projects. The first project, project A is a 5-year project requires a capital investment of 800 million dollars. The cash flows for the following 5 years are 200,300,330,140, and 120 million dollars, respectively. The second project, project B is a 5 -year project requires a capital investment of 600 million dollars. The cash flows for the following 5 years are 330,200,150,75, and 10 million dollars, respectively. The required rate of return for both projects is 10 percent. Draw the NPV profiles and compute the crossover point. What is the discount rate at the crossover point? 0.11449 0.12532 0.13408 0.1153

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