You are considering two mutually exclusive investments. The projects expected net cash flows are as follows:

Expected Net Cash Flows

Year	Project X	Project Z
0	$ (45,000.00)	$ (50,000.00)
1	$ (20,000.00)	$ 15,000.00
2	$ 11,000.00	$ 15,000.00
3	$ 20,000.00	$ 15,000.00
4	$ 30,000.00	$ 15,000.00
5	$ 45,000.00	$ 15,000.00

a)	Construct NPV profiles for Projects X and Z (complete the following table AND line graph)
	Discount Rate	NPV X Profile	NPV Z Profile
	0%
	5%
	6%
	9%
	12%
	15%
	18%
	21%

b)	Calculate each project's IRR
	Project X IRR
	Project Z IRR

c)	Which project would you choose for the following rates?
	9%
	12%
	15%

d)	At what rate do the NPV profiles of the two projects cross?
Year	Difference in cash flows:
0			Crossover Rate:
1
2
3
4
5