Question: 1. The cash flows from two mutually exclusive projects (A and B) are given below. Calculate the crossover rate (i.e., the discount rate at which

1. The cash flows from two mutually exclusive projects (A and

1. The cash flows from two mutually exclusive projects (A and B) are given below. Calculate the crossover rate (i.e., the discount rate at which their NPVs are equal) and explain when the NPV and IRR methods will produce conflicting results (and when they do not). Time (year) 3 4 5 Cash flows (A) -7500 4000 3000 2000 1000 0 Cash flows (B) -7500 1000 2000 4000 5000 0 2

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