fable Font Alignment Number 036 X A C F H. K 28 is reversed, and Project B should be accepted. 29 30 b. Construct NPV profiles for Projects A and B. 31 32 Before we can graph the NPV profiles for these projects, we must create a data table of project NPVS relative to 33 differing costs of capital. 34 Project A 35 Project B 36 0 % 2% 37 38 39 4% 6 % 8 % 10 % 12 % 40 41 42 43 44 14% 45 46 16% 18% 20% 22% 24 % 47 48 49 50 26% 51 28% 30% 52 63 54 c. What is each project's IRR? 55 56 We find the internal rate of return with Excel's IRR function: 57 58 IRR A- Note in the graph above that the X-axis intercepts are equal to the two projects' IRRS. 59 IRR B- 60 61 d. What is the crossover rate, and what is its significance? 62 Part 2 Part 1 Ready fable Font Alignment Number 036 X A C F H. K 28 is reversed, and Project B should be accepted. 29 30 b. Construct NPV profiles for Projects A and B. 31 32 Before we can graph the NPV profiles for these projects, we must create a data table of project NPVS relative to 33 differing costs of capital. 34 Project A 35 Project B 36 0 % 2% 37 38 39 4% 6 % 8 % 10 % 12 % 40 41 42 43 44 14% 45 46 16% 18% 20% 22% 24 % 47 48 49 50 26% 51 28% 30% 52 63 54 c. What is each project's IRR? 55 56 We find the internal rate of return with Excel's IRR function: 57 58 IRR A- Note in the graph above that the X-axis intercepts are equal to the two projects' IRRS. 59 IRR B- 60 61 d. What is the crossover rate, and what is its significance? 62 Part 2 Part 1 Ready