severely penalized by high capital costs. The significance of the crossover rate is that at any cost of capital grower than the crossover rate, the NPV and The methods will provide the same conclusion for evaluating mutually exclusive projects. However, at any cost of capitalen than the crossover rate, the NPV and I methode condusions will conflict. In that situation, the IRR v method will always provide the correct project acceptance result. Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects after-tax cath flows are shown on the time line below. Depreciation, salvage values, not operating working capital requirements, and tax effects are all included in these cathows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project, Bellinger's WACCI 8%. 0 1,500 310 Project A Projects 700 300 370 310 - 1,500 755 395 What is Project Delta's IRR? Do not round Intermediate calculations. Round your answer to two decimal places ory What is the significance of this IRR? It is the select after this point when mutually exclusive projects are considered there is no conflict in project acceptance between the NPV and IR proches Review the graphs below. Select the graph that correctly represents the correct NPV profile for Projects A and B by using the following drop down menu NPV Profiles B NPV Profiles A INNS INPV. 600 500 400 300 200 600 500 400 300 200 MacBook Pro