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K NPV profile of two mutually exclusive projects Moulton Industries has two potential projects for the coming year, Project B-12 and Project F-4. The
K NPV profile of two mutually exclusive projects Moulton Industries has two potential projects for the coming year, Project B-12 and Project F-4. The two projects are mutually exclusive. The cash flows are listed in the following table: Draw the NPV profile of each project, and determine their crossover rate. If the appropriate hurdle rate is 8% for both projects, which project does Moulton Industries choose? Which of the Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Project B-12 Year 0 - $4,300,000 Project F-4 - $3,800,000 Year 1 $2,070,000 $0 Year 2 $2,070,000 $1,010,000 Year 3 $2,070,000 $1,600.000 Year 4 $0 $2,100,000 Year 5 $0 $2,520.000
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