NPV as a function of rate 10 The mutually exclusive projects have cash flow as shown below. a. What is the IRR of each project b. Based on information given so far, can you give a recommendation, which project to accept? Plene explain c. When would you accept project at lower or higher discount rates? Explain d. When would you accept project 2 - at lower or higher discount rates? Explain e. At what discount rate would you be indifferent between the two projects What is this point called on a diagram? 30 - 1 20 10 Project NPV Rate Project 1 Project 2 096 S50.00 $25.00 5% $36.16 $20,77 104 $21.34 $17.02 154 $14.16 $13.69 2001 S5.32 $10.69 -$240 S8.00 3096 -$9.19 55 56 35% $15.21 S335 1096-520.55 S131 4596$2514 -0.52 30%-$29.63 -5222 -10 10 so 1 lavesten CFI -30 Project Project 2 -100 -10 50 10 50 25 50 0 CE Score What is the of each project? TRR Masimam Score Eib Hasalon information given so far, can you give a commendation, which project to cope? Please explain > When would you incept project at lower or higher discounted Explain dection IN Prem d. When would you accept project 2 - at lower or higher discount rates? Explain 2 e. At what discount rate would you be indifferent between the two projects? What is this point called on a diagram? Project 1 Project 2 Difference NPV DiCount rate 4 2