What is the significance of this IRR? It is the (equity return, crossover rate, or interest yield), after this point when mutually exclusive projects are considered there is no conflict in project acceptance between the NPV and IRR approaches.

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 cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 10%. 0 1 2 3 4 750 Project A -1,250 700 370 200 310 Project B -1,250 280 315 395 What is Project Delta's IRR? Do not round intermediate calculations. Round your answer to two decimal places. % 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. -Select- NPV Profiles A NPV Profiles B IN PV 600+ IN PV 600+ 5001 500+ 400 3001 400+ 300+ 200 1001 200 1001 5 10 15 20 25 30 5 10 13 20 25 30 Cost of Capital Eost of Capital -100 -2007 -300 -4001 -100 -2007 -300+ -4001 Project A Project B NPV Profiles D INPV 600+ Project A Project B NPV Profiles C INPV 600 500+ 400 + 300+ 200 1001 500 400+ 300+ 2001 1001 5 10 20 25 30 5 10 20 25 30 Cost of Capital Cost of Capital -100 -200 -300 -4001 -100 -2001 -3001 -4001 Project A Project B Project A Project B