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please show all steps and all CALCULATION to arrive at the answers Question 3: Hanse, Inc., has the following two mutually exclusive projects available. Year

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Question 3: Hanse, Inc., has the following two mutually exclusive projects available. Year 0 1 2 Project A -$ 85,000 39,000 27,000 26,000 19,000 11,000 Project B -$ 85,000 25,000 24,000 30,000 35,000 14,000 3 a) Draw a graph with the NPV on the y-axis and the discount rate on the x-axis and plot the NPV profiles of each project in this graph. What is the NPV of each project when the discount rate is equal to zero? What is the discount rate of each project at which NPV is equal to zero? What is the crossover rate for this project? What is the NPV of each project at the crossover rate? Include all of your calculated values into the graph. (15 points) b) Which project should be accepted if the discount rate is below the crossover rate? Explain. (5 points)

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