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) 0 1 2 3 4 5 Cash flows (A) -7500 4000 3000 2000 1000 0 Cash flows (B) -7500 0 1000 2000 3500 5000 2. Suppose your firm is considering two mutually exclusive projects with the following cash flows. Assume that both projects require a rate of return of 8 percent (WACC). The maximum allowable payback and discounted payback statistics for the projects are two and three years, respectively. Time 0 1 2 3 Project A Cash Flow -20,000 10,000 30,000 1000 Project B Cash Flow -30,000 10,000 20,000 50,000 Use the NPV, IRR, MIRR, payback, and discounted payback decision rules to evaluate the projects; which one(s) should be accepted or rejected