You are the CFO of XYZ company and you are considering two projects to invest. The project A needs initial investment by $30 million today, and you expect to receive $5m, 10m, 15m, and 20m for next four years; the project B has the same initial investment of $30m, and then you expect to receive $20m, 10m, 8m, and 6m. If your firm's WACC is 10 percent, and assume the taxation will not be taken into consideration currently.

Use the timelines to describe the projects' cash flows (in million of dollars).

Calculate the projects' NPVs, IRRs, payback periods and Profitability Indies (by Financial calculator and formula approach both if applicable).

If the two projects are independent, which project(s) should be chosen based on NPV approach? IRR? Packback Period? And Profitability Index?

If the two projects are mutually exclusive, which projects should be chosen based on NPV approach? IRR? Packback Period? And Profitability Index?

Plot NPV profiles for the two projects. Identify the projects' IRRs on the graph.

If the WACC decrease to 5 percent, would this change your recommendation if the projects are mutually exclusive? If the WACC is changed to 15 percent, would this change your recommendation? Explain your answers.

The "crossover rate" is 13.5252 percent. Explain in words what this rate is and how it affects the choice between mutually exclusive projects. For example, does any conflict exist between the NPV and the IRR for mutually exclusive projects? And which method will be better and why?

If it possible for conflicts to exist between the NPV and the IRR when independent projects are being evaluated? Explain your answer.