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Question 1 Consider the following mutually exclusive investments T=0 1 2 Investment A: -100 20 120 Investment B: -100 100 31.25 Draw a graph, where
Question 1
Consider the following mutually exclusive investments
| T=0 | 1 | 2 |
Investment A: | -100 | 20 | 120 |
Investment B: | -100 | 100 | 31.25 |
Draw a graph, where you will show the NPV of each project as a function of its discount rate (i.e NPV on the vertical axis and r on the horizontal axis). Both NPVs should be on the same graph.
also, find the cross over rate
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