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In this exercise you will apply capital budgeting tools to evaluate investment decisions. In this problem, there are two competing investment projects with the same
In this exercise you will apply capital budgeting tools to evaluate investment decisions. In this problem, there are two competing investment
projects with the same capital outlay, but different cash flows. Your role, as a financial manager, is to select the investment which will increase
value for existing shareholders.
Before you begin this milestone, be sure to review the Module Excel Template, available in Blackboard. Note that you are not required to use
this template for your submission, but may do so if you find it helpful for completing this milestone.
To successfully complete this exercise, follow these steps:
Consider the following two mutually exclusive investment projects:
Sketch the NPV profiles for and over a range of discount rates from to percent
Identify the crossover rate for the two projects
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