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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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