For the above projects find the cross$-$over point, i$.$e the discount rate where NPV$$s are equal. $$ Draw a rough draft

of the two NPV profiles. Hint: figure out the NPV at a zero$-$discount rate. Hint: The intersection does not have to be positive.

$$ At $5\%$ which project would you select? $$ At $20\%$ which project would you select?

Year Project A Project B

$0(48,000)(80,000)$

$11900019000$

$21900019000$

$31900019000$

$419000$

$519000$

$619000$

$719000$