Moulton Industries has two potential projects for the coming year, Project B-12 and Project F-4. The two projects are mutually exclusive. The cash flows are listed below. Draw the NPV profile of each project and determine the cross-over rate of the two projects. If the appropriate hurdle rate is 10% for both projects which project does Moulton Industrieschoose?

Cash Flovw Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Project B-12 $4,250,000 $2,000,000 $2,000,000 $2,000,000 Project F-4 $3,800,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000