Your firm has the opportunity to expand into one of two new markets, and you have been asked to conduct the financial analysis. The firm can enter only one of these markets now, so the projects are mutually exclusive. The initial outlays are $240,000 for Project A and $225,000 for Project B. The forecast cash flows are shown below.

	year 0	year1	year 2	year 3	year 4
PROJECT A	-240,000	20000	50,000	100,000	150,000
PROJECT B	-225,000	145,000	60,000	40,000	30,000

1. Work independently and use your skills to produce the IRR of each project. (5 marks)
2. What is the NPV of each project at discount rates of 0%, 6%, 12% and 18%. (5 marks)
3. Apply the best communication skill to construct the crossover rate (incremental IRR). (5 marks)
4. Produce an NPV profile chart to illustrate how the choice between the two projects depends on the discount rate. (5 marks)

e) Work independently and Clearly explain the conclusions to be drawn from the NPV profile. (5 marks)