DHT International is considering two mutually exclusive investments. The projects$$ expected net cash flows are as follows:

Expected Net Cash Flows

Year Project A Project B

$0($$$400)($$$650)$

$1(528)210$

$2(219)210$

$3(150)210$

$41,100210$

$5820210$

$6990210$

$7(325)210$

a$.$Construct NPV profiles for Projects A and B$.$

b$.$What is each project$$s IRR?

c$.$If each project$$s cost of capital were $10\%,$ which project, if either, should be selected? If the cost of capital were $17\%,$ what would be the proper choice?

d$.$What is each project$$s MIRR at a cost of capital of $10\%?$ At $17\%?$

e$.$What is the crossover rate and what is its significance?