Please show your work and write out your solutions in detail by giving formulas and a short
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Please show your work and write out your solutions in detail by giving formulas and a short summary at the end. Please do not just post about financial calc or excel without explaining how you got the answer. thank you!
Consider the following mutually exclusive projects:
T=0 | 1 | 2 | 3 | |
Project X: | -100 | 20 | 30 | 90 |
Project Y: | -100 | 80 | 30 | 20 |
- Find IRRs for both projects.
- Find the cross-over rate.
- Construct a graph, where you will show the NPV of each project as a function of its discount rate (i.e NPV on the vertical axis and r on the horizontal axis). Both NPVs should be on the same graph. This graph is the NPV schedule.
- Please describe as fully as possible which project is the best and under which circumstances.
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