Use the NPV profile to answer the following questions, assuming that the cost of capital for the firm is 14%.

NPV profile

If Cat and Fiddle are mutually exclusive projects, which projects, if any, would be selected on the basis of the net present value method?

Answer 1

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If Cat and Fiddle are independent projects, which projects, if any, would be selected on the basis of the internal rate of return method?

Answer 2

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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?

Answer 3

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