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Problem 2: Consider the projects 1 and 2 given in the table here: 0.08 Year 0 1 2 3 4 NPV IRR CF1 -$180,000 $30,000
Problem 2: Consider the projects 1 and 2 given in the table here: 0.08 Year 0 1 2 3 4 NPV IRR CF1 -$180,000 $30,000 $80,000 $95,000 $80,000 $50,581.33 18.49% CF2 -$180,000 $80,000 $70.000 $95,000 $25,000 $47,877.60 20.74% Crossover Point 1-2 2-1 Which is the better project? At what discount rate (r) will the two projects have the same NPV? Graph the NPV profiles for each project and denote the crossover point. Explain the conflict between NPV and IRR
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