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You've estimated the following cash flows (in $ million) for two mutually exclusive projects: Year Project A Project B 0 -26 -41 1 30 45

You've estimated the following cash flows (in $ million) for two mutually exclusive projects:

Year Project A Project B
0 -26 -41
1 30 45
2 40 50

Part 1

What is the crossover rate, i.e., the discount rate at which both projects have the same NPV?

Part 2

What is project A's NPV at the crossover rate?

Part 3

What is project B's NPV at the crossover rate?

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