(NPV profile) Consider the projects shown here.

a. Based on a 10% cost of capital, which is the better project?

b. Is this an example of size differences or cash flow timing differences?

c.What is the crossover point, the discount rate that would have the same NPV for both projects? (Hint Find the differential cash flows between the two projects. Then find the IRR for the differential cash flows.)

CASH FLOWS ($)

PROJECT: CFo, CRI, CF2, NIV @ 10%, IRR

RI -100, 70, 70, $21.49, 25.7%

R2 -150, 100, 100, $23.55, 21.5%

this is one question and I will rate if correct