OOK Print Day 5 (At Required Information [The following information applies to the questions displayed below.] Instructions: Answer the following questions for these two mutually exclusive projects. The NPV profile displays the relative NPV of the two choices over different discount rates, the IRR for each project, and the crossover point. In the Settings area select different scenarios and hote how the graphs change. Use his information and the financial calculator to help you answer the questions below. Net Present Value GRAPH NPV Profiles for Mutually Exclusive Investments NPV (in s thousands) SETTINGS Select Scenario Reser 27

Requlied information the fonowing intorniationspoles to the questions cisplaved below? Instructions: Answer, the folicwig questions for tnese wo mutually excius ve projects. The NPV profile dispioys the Telative NPV of the tyro shoices ove diferent discoust rates the IRR for each project. and the crossoverpoint solcuton to relo yous onswer the questons below NPV Profles for Mutually Exclusive Investments Select Scenario 1. Naw information is found that indicates the likelihood of succens for inthouse dovalpment is lowas (1) 2. A third firm announces that it wil be devaloping an seti-fpam product the competar dinct) with Erightmails, lowering the tipected profits and eash Bows from the purchase. 0 3. simenteci new produce takes fonger than custad tog gain 4, 44 ons 15. The new product develped inhouse is successful in market tests and is expected to take off faster than previously estimated. Also, Brightmal develops a new version of its product that takes time to gain market acceptance, but delvers strong sales and profits in a few years, (i) The questions arebased on the data fiom the interactive two choices over different discountrates, the iRR for esch project, and the crossover point For these questions, use the defaulz settings, do not select o scenatio. For low discount rates. Which choice creates more velue son the firm? Multsple Choice Purchse 06.400 wmm