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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

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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 graphs below best fits the NPV profiles of the projects? Click on the magnifying glass icon to see an enlarged version of each graph (Select the best response.) O A. NPV in millions of dollars 3.5 3.0 2.53 2.0 1.5 1.0 0.5 0.03 -0.5 -1.0 -1.5 -2.0 Discount rates (%) L dollars Q Q O B. 3.5 3.0- 2.5 2.0 1.5 1.0- 05 0.0 -0.5 -1.03 -1.53 -2.0 Discount rates (%) NPV in millions Q OC. NPV in millions of dollars 3.5 3.0 2.53 2.0 Data table Cash Flow Project B-12 - $4,220,000 $2,050,000 1.5 1.0- 0.5 Year 0 Year 1 0.0 -0.5 Year 2 Year 3 -1.0 Year 4 -1.53 -2.0 Year 5 Discount rates (%) Project F-4 - $3,800,000 $0 $920,000 $2,050,000 $2,050,000 $1,550,000 $0 $1,930,000 $0 $2,510,000

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