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Herearethetwocashflowforecastsfortwomutuallyexclusiveprojects.FindouteachprojectsNPV,IRR,andMIRRatacostofcapitalof8.25%.Whatistheprojectscrossoverrate?GraphtheNPVprofilesfortheprojects.AtwhatinterestrateswillyoupreferprojectBtoA? Time Project A Project B 0 (8500) (9500) 1 3600 3900 2 2400 2900 3 2850 2900 4 5200 5550

Herearethetwocashflowforecastsfortwomutuallyexclusiveprojects.FindouteachprojectsNPV,IRR,andMIRRatacostofcapitalof8.25%.Whatistheprojectscrossoverrate?GraphtheNPVprofilesfortheprojects.AtwhatinterestrateswillyoupreferprojectBtoA?

Time Project A Project B

0 (8500) (9500)

1 3600 3900

2 2400 2900

3 2850 2900

4 5200 5550

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