Question: 1. (35 points) You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value

 1. (35 points) You are considering the following two mutually exclusive

1. (35 points) You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value. Year 0 1 2 3 4 5 6 7 8 9 10 Project(A) -$30,000 13,000 11,000 9,000 7.000 0 0 0 0 0 0 Project (B) -$30,000 5,000 5,000 5,000 5.000 5,000 5,000 5,000 5.000 5.000 5,000 The required rate of return is 10%. (8) Sketch the NPV profile. Plot all the relevant coordinates (i.e., the points on the x and y axis, and the cross-over rate) on the graph

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