Problem 4 (20%) Consider the following mutually exclusive projects: Co -500 -500 Project A B C 400 0 C 200 0 C3 50 754 a. Calculate the NPV of each project for discount rates of 0%, 10 % and 20%. Plot these on a graph with NPV on the vertical axis and discount rate on the horizontal axis. b. What is the approximate IRR (internal rate of return) for each project? c. Which of the discount rates 0%, 10%, 20% makes the company accept project A? d. Calculate the NPV of the incremental investment (B-A) for discount rates of 0%, 10% and 20%. Plot these on your graph. e. What is the approximate IRR of the incremental investment? f. Show that if the internal rate of return of the incremental investment is used as the discount rate, projects A and B will have the same NPV