Question
**Mutually exclusive project: Project 1 has NPV 29055.39 and IRR 24% adn Project 2 has NPV 29786.22, IRR 21% Cross over rate is 11.1%** #What
**Mutually exclusive project: Project 1 has NPV 29055.39 and IRR 24% adn Project 2 has NPV 29786.22, IRR 21% Cross over rate is 11.1%**
#What is the Approximate IRR of the projects? Let's say your WACC is 10%; in that case what will the NPV of the projects be.
#Which one will you choose? Which metric will you base your answer on (NPV vs. IRR). Explain your answer in details
#Assume we don't know the WACC. Plot the IRR points in one graph and try to find out the crossover point. The number doesn't need to exact; an approximation is acceptable. Explain the crossover point and its implication for investors.
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