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Numerical Problem Consider the following two mutually exclusive projects: Year CF Project A 0 -39,375 18,165 17,010 14,490 7.980 1 CF Project B -39,375 5,985

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Numerical Problem Consider the following two mutually exclusive projects: Year CF Project A 0 -39,375 18,165 17,010 14,490 7.980 1 CF Project B -39,375 5,985 13,545 17,115 28,875 2 3 4 You require 12% on your investment. 1- Calculate the NPV for each project. Which project should be chosen? 2. Calculate the IRR for each project. Conclude 3. Calculate the crossover rate. Comment

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