Problem $3$

nitro

You've estimated the following cash flows $($in $ million$)$ for two mutually exclusive

projects:

Part $1$

What is the crossover rate, i$.$e$.,$ the discount rate at which both projects have the

same NPV$?$

Part $2$

What is project A$\text{'}$s NPV at the crossover rate?

Part $3$

What is project B$\text{'}$s NPV at the crossover rate?