Use the following information to answer the questions 1-3 The cost of project $100,000. You expect the project to make $500,000 in seven ye year 7= $500,000). Your cost of capital = 20% 1) The IRR for this project = A) 15.65% B) 18.94% C) 20.01% D) 25.85% 22 00.0022 0 2) The NPV for this project =: A) $29,201 B) $39,500 ) $129,201 ) $139,500 The decision that you should make for this project is eject it since the NPV 0. cept it since the IRR 20% The two projects are as follows. Discount rate-10% Project X Project Y Cash-Flow Cash-Flow 0 -$100,000 $100,000 1 Year 50,000 40,000 30,000 10,000 10,000 30,000 40,000 60,000 2 3 4. 10. Calculate the crossover rate. a. 6.93% Use the following information to answer the questions 1-3 The cost of project $100,000. You expect the project to make $500,000 in seven ye year 7= $500,000). Your cost of capital = 20% 1) The IRR for this project = A) 15.65% B) 18.94% C) 20.01% D) 25.85% 22 00.0022 0 2) The NPV for this project =: A) $29,201 B) $39,500 ) $129,201 ) $139,500 The decision that you should make for this project is eject it since the NPV 0. cept it since the IRR 20% The two projects are as follows. Discount rate-10% Project X Project Y Cash-Flow Cash-Flow 0 -$100,000 $100,000 1 Year 50,000 40,000 30,000 10,000 10,000 30,000 40,000 60,000 2 3 4. 10. Calculate the crossover rate. a. 6.93%