ZZZ Best (ZZZ) is considering two mutually exclusive projects with the annual cash flows shown below.

	Project A	Project B	Difference
CF 0	-400000	-325000	-75000
CF 1	160000	200000	+40000
CF 2	220000	180000	-40000
CF 3	240000	140000	-100000
IRR of Project
NPV @ 6% Discount Rate
NPV @ 14% Discount Rate
Crossover Point
NPV at Crossover Point

What is the IRR of each project? _____________, ___________

Which project should it choose at a Discount Rate of 6%? __________

Which project should it choose at a Discount Rate of 14%? ___________

What is the discount rate at the Point of Indifference (Crossover)? __________

What is the NPV of each project at the Crossover Point? _____________

Which project should be chosen if the discount rate is the Point of Indifference? ______

What is the discount rate above which neither project should be accepted? __________