Question $5$: NPV profile

Use the following table and the NPV profile to answer the following questions,

assuming that the cost of capital for the firm is $15\%.$ NO CALCULATIONS required for

this question. $(5$ marks$)$

$($a$)$ Mark the IRR for Cat and Fiddle on the graph above $(1$ mark$)$

$($b$)$ If Cat and Fiddle are independent projects, which projects, if any, would be

selected on the basis of the internal rate of return method? $(1$ mark$)$

$($c$)$ If Cat and Fiddle are mutually exclusive projects, which projects, if any, would

be selected on the basis of the internal rate of return method? $(1$ mark$)$

$($d$)$ If Cat and Fiddle are independent projects, which projects, if any, would be

selected on the basis of the net present value method? $(1$ mark$)$

$($e$)$ If Cat and Fiddle are are mutually exclusive projects, which projects, if any,

would be selected on the basis of the net present value method? $(1$ mark$)$